Bloomberg News

Vale Is `Ready' to Buy PT Inco Stakes If Necessary

October 05, 2006

Cia. Vale do Rio Doce, the world's largest iron ore producer, is ``ready and able'' to buy minority stakes if required as part of its $17.3 billion offer for Canada's Inco Ltd., Chief Executive Roger Agnelli said.

Indonesian investors own 20 percent of PT Inco, a unit of the Canadian company that has a nickel mine in Indonesia, and Vale will have to get approval from the Indonesian government to take control of the operation, Agnelli said at the opening of Vale's Brucutu mine in Brazil's central highlands.

Agnelli said it's ``highly unlikely'' that the government would require Vale to buy out the minority shareholders because it would end the participation of Indonesian capital in the company.

Vale won't need to sell any of its assets to finance the purchase and plans to pay for the acquisition within seven years, Agnelli told reporters. ``We have the cash flow to pay for this purchase and still do all the other things we want to do,'' he said.

Agnelli also said Vale has no plans to sell or increase its 50 percent stake in California Steel Industries Inc.

To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net

To contact the editor responsible for this story: Laura Zelenko in New York at lzelenko@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus