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Markets see Schvartsman as an excellent choice for Vale

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News that Fabio Schvartsman would be the new chairman of the largest iron ore  mining company Vale made the companies  preferredshares rise 1.93 percent on Tuesday (March 28). Mr. Schvartsman has been the CEO of Klabin, the country’s largest paper and cardboard producer, for the past six years and is referred by many as one of Brazil’s most experienced managers.

Mr. Schvartsman is perceived to be as competent as he is discreet, and the announcement of his name to replace Murilo Ferreira at Vale took the market by surprise, as many thought there would be state interference in the selection of the new CEO.

According to some sources, the new choice coincides with the version that is to be ended a controlling shareholder pact at the company, that has been in place for twenty years, giving special leverage to state-companies pension funds and state-owned BNDES.