VALE S.A Hits Highest Since May 2015 After Brazil President Says Won’t Push for New CEO Until Next Year

VALE S.A ¬†was up more than 6%, off the the highest level since May 2015 hit earlier, after Brazilian President Michel Temer said he would not push to replace the company’s CEO until the current executive’s mandate expires in May, according to Reuters, citing local newspaper Folha de S.Paulo over the weekend.

Temer has been seeking a replacement for CEO Murilo Ferreira, who was the preferred choice of impeached former President Dilma Rousseff and is considered by Temer’s camp to be too close to the previous administration, Reuters reported.

Temer now will not try to force Ferreira’s early exit after coming up against resistance from state pension funds that have seats on Vale’s board, the story said.

The O Globo newspaper reported Sunday, without citing sources, that Temer’s preferred candidate to replace Ferreira is Nelson Silva, head of strategy and management at state-run oil company Petrobras (PBR), Reuters said.

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