The Brazilian Government has brought down pressure on Vale to kick current CEO Roger Agnelli out of the top position.
According to Reuters, the Government used its position as the major shareholder in the miner to demand Vale remove Agnelli amidst accusations that he was not doing enough to boost the South American nation’s economy.
The newspaper O Estado de S. Paulo cited an unidentified government source saying company shareholders were close to reaching an agreement on a new leader.
The move foreshadows a potential drop in Vale shares, but “so long as he is replaced by someone competent and not by a political appointee, the market reaction will be relatively tame,” Pedro Galdi, chief analyst at Sao Paulo broker dealer SLW Corretora told Forbes Magazine.
Vale’s current executive director of base metals Tito Martins, and the director of marketing, sales and strategy Jose Carlos Martins, have been named as the most likely candidates, according to Estado.
Vale is the world’s largest iron ore miner.