Tuesday, October 19, 2010

Vale (NYSE:VALE) Positioned to Grow Organically, Spending $28 Billion on

Vale SA (NYSE:VALE) CEO Roger Agnelli said when talking with investors Monday that the company will focus on organic growth, looking at spending from $26 billion to $28 billion on projects.

Agnelli said the company had been buying up assets from 2004 through 2006, and while open to potential acquisitions, doesn't see anything at this time that is attractive.

Even if he did, the focus on the company will remain on organic growth.

The major focus in that area for Vale is iron ore and fertilizers.

Now Vale needs to shed the yoke of the Brazilian government off its neck so it doesn't have to operate under the threat of a veto if it does want to go in certain directions.

The government owns 51 percent of Vale, and can can veto or change the leadership of the company whenever it chooses to.

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