Business & Banking

Apr 1, 2002

Brazilian Government Sells Its CVRD Stock
The Brazilian government raised $1.6 billion from the March sale of 68.5 million shares of Cia Vale do Rio Doce (CVRD), the privatized mining company and the world's largest producer of iron ore. The sale, which represented 27.4% of CVRD's ordinary stock and 17.6% of total equity, was equally split between local and domestic investors. Shares priced at R$ 57.28 ($24.50) each. The Brazilian development bank BNDES managed the sale on the government's behalf. Merrill Lynch and ABN AMRO led the sale. This is Brazil's first public offering of government-owned stock since the August 2000 sale of $4.1 billion worth of common stock of Petrobras, the state-owned oil company. The government heavily promoted the CVRD offering in Brazil and authorized retail investors to buy stock at a discount, using part of their balance in their mandatory savings plan. ...

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