UPDATE 2-Vale sees global share offering July 4 or later
July 3rd, 2008 | by admin |(Adds analyst, background, updates share price)
RIO DE JANEIRO, July 3 (Reuters) - Brazil’s mining giantVale (VALE5.SA: Quote, Profile, Research, Stock Buzz)(RIO.N: Quote, Profile, Research, Stock Buzz) said on Thursday its previouslyannounced share offering of up to $15 billion should take placeon July 4, or any day after that as it is subject to the marketregulator’s approval.
Vale said in a statement the offering would include 256.9million ordinary voting shares and 164.4 million preferredshares. Credit Suisse Securities is the lead underwriter of theoffering, Vale said. It provided no other details on thepricing.
The offering will take place in Brazil and abroad, withinternational investors being able to acquire AmericanDepositary Shares of Vale. Vale has also requested to list itsordinary and preferred ADSs on the Euronext bourse in Paris.
Vale repeated its statement made last month that it willuse the money raised through the issue to finance its $59billion five-year investment plan, for strategic acquisitionsand to achieve greater financial flexibility.
Vale shares fluctuated sharply in early trade on Thursdayand were 0.2 percent higher at 43.5 reais after swinging intopositive and negative territories several times.
Vale said it had already met CVM regulator’s demandsregarding the offering, which makes the approval likely. Valesaid the offering also depended on market conditions.
Pedro Galdi, an analyst with SLW Brokerage in Sao Paulo,said Vale is unlikely to wait much longer for market conditionsto improve even though its shares are trading at about half thevalue considered fair by some banks after a broader market’sslide since mid-May.
“They can do it now and practically extinguish their debtto prepare themselves for bigger acquisitions further ahead,not exactly now,” he said.
