Temer is trying to intervene in Vale, which is a private company.

Michel Temer's interim government seeks to change the leadership of Vale, replacing its president Murilo Ferreira; the private shareholders, Bradesco, Mitsui, and Previ, are resisting; in a meeting with Temer, the president of Bradesco, Luiz Carlos Trabuco, argued that Vale's corporate governance would not be respected if there were a change for reasons that did not involve the evaluation of the company's board of directors; Ferreira's contract as head of the company runs until April 2017.

June 06, 2016, 18:15 pmUpdated June 30, 2018, 01:08 pm

Michel Temer's interim government seeks to change the leadership of Vale, replacing its president Murilo Ferreira; the private shareholders, Bradesco, Mitsui and Previ, are resisting; in a meeting with Temer, the president of Bradesco, Luiz Carlos Trabuco, argued that Vale's corporate governance would not be respected if there were a change for reasons that did not go through the evaluation of the company's board of directors; Ferreira's contract at the helm of the company runs until April 2017 (Photo: Aquiles Lins)

247 - Interim President Michel Temer is locked in a power struggle with the private shareholders of the mining company Vale, Bradespar and Mitsui. Temer met with the president of Bradesco, Luiz Carlos Trabuco, on May 21st, where he revealed his desire to remove Murilo Ferreira from the company's leadership.

According to Valor, Trabuco reportedly responded that Vale's corporate governance would not be respected if there were a change for reasons not approved by the company's board of directors. Ferreira's contract as head of the company runs until April 2017.

Trabuco's position is that Murilo Ferreira's departure before the deadline could be misinterpreted by the market, potentially leading to a decrease in the company's stock value, as well as sending a signal that Vale is suffering from political interference.

Vale is controlled by the pension funds Previ, Petros, Funcef and Fundação Cesp, grouped under the holding company Litel Participações, by BNDESPar, by Bradespar (holding company of Banco Bradesco) and by the Japanese trading company Mitsui. This group of shareholders is represented through Valepar, which owns 53% of the company's voting shares.

According to Valor, Temer is being pressured to change the company's leadership, especially by the PMDB party in Minas Gerais, but has not yet made a decision on the change. The PMDB in Minas Gerais is leading the political movement for the executive's replacement, but according to sources close to the interim president, dissatisfaction with Vale is also expressed by other sectors, including Minas Gerais society.read more).