The sale of the government´s share in Companhia Vale do
Rio Doce (CVRD), expected to be the largest Latin American
privatization to date, is to go ahead in three phases. The
floor price for CVRD, one of the world´s biggest natural
resources group, has been fixed at R 10.63 billion
(approximately US 9.6 billion). The government holds 76% of
the total voting shares and 6% of preferred shares of CVRD.
Minority stockholders can sell their stakes of the three
auctions to be held.
On April 29,45% of the voting shares held by the
government will be auctioned to new investors, who will need
to form special purpose company (SPC) in which no individual
group may hold more than a 45% stake. Ownership of the SPC
is to remain unchanged for 5 years.
A second auction is expected soon after with the 6%
preferred share stake and a 4% stake in voting shares being
offered to CVRD´s employees. Finally, 21% of the voting
shares are expected to be sold on local and International
markets in next few months.The General Telecommunications Bill has been given
priority and is now expected to be sent to the plenary of
the House of Representatives for debate in early April. The
bill reflects the changes introduced by Constitutional
Amendment No. 8 of August 1995, which allowed concessions of
public telecommunications services to be awarded to the
private sector and established a regulatory agency for the
On February 24 1997, Judge João CM Soares of the
eighth Federal Court of Brasilia ruled against the
injunction entered by the Syndicate of Telecommunications
Workers (Sinttel-DF) requesting the suspension of the bid
for concessions of bend B mobile phone services. Qualifying
documentation and proposals are to be submitted in Brasilia
on April 7 1997.