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Vale shareholders approve corporate reorganization

Published 06/27/2017, 03:25 PM
Updated 06/27/2017, 03:25 PM
© Reuters.  Vale shareholders approve corporate reorganization
  • Vale (VALE +1.7%) is higher after shareholders approve a share conversion plan in an attempt to improve transparency, give equal votes to all shares and perhaps limit government meddling.
  • Shareholders approve all seven items on the corporate restructuring agenda, in a first step toward giving the company dispersed share ownership where no major shareholder controls decision making.
  • Investors hope the changes will help improve investor perceptions of Vale, translating into a faster convergence of share prices to those of rivals, and a decline in the miner's cost of capital.
  • Most Brazilian stocks are lower following news overnight that federal prosecutors charged Pres. Temer with corruption; Brazil's benchmark interest rate surged 14 bps to 10.78%.
  • ETFs: EWZ, BRF, BRZU, BZQ, EWZS, BRAQ, UBR, BRAZ, DBBR, FBZ


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