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. ...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.