Conclusion of Florestas Rio Doce Assets Sale

Conclusion of Florestas Rio Doce Assets Sale

10/2/2002

Conclusion of Florestas Rio Doce Assets Sale

Rio de Janeiro, October 2, 2002 – Companhia Vale do Rio Doce (CVRD) informs that it has approved a new price for the shares buyback of its subsidiary Companhia Paulista de Ferro Ligas (CPFL). The new buyback price for CPFL shares will be R$ 15,80 per share, 31,4% above the previous buyback price of R$ 12,02 per share, announced on August 29, 2001. The buyback price of R$ 15,80 per share will be adjusted by the Referential Rate (TR), calculated on a pro rata die basis, from September 2, 2002 until the financial settlement date of the auction, which will be held at the São Paulo Stock Exchange (BOVESPA).

CVRD aims to acquire 620,430 shares, representing 6.1723% of CPFL total capital held by minority shareholders, and therefore promote its delisting. The public notification for acquisition of minority interest is under the appreciation of the Brazilian Securities and Exchange Commission (CVM).

The buyback price of R$ 15.80 for each CPFL share, is 45.5% above the average price of the last 30 trading sessions (R$ 10.86) and 7.9% above its book value per share as of June 30, 2002 (R$ 14.65). Thus, the price fixed by CVRD represents a good opportunity for CPFL minority shareholders to realize gains with this asset which, due to the small free float, has a very low liquidity.

Once the public notification for acquisition of minority interest of CPFL is approved by CVM, CVRD will announce all the relevant information concerning the delisting of the mentioned company.

 

For further information, please contact:
+55-21-3485-3900

Andre Figueiredo: andre.figueiredo@vale.com
Andre Werner: andre.werner@vale.com
Samir Bassil: samir.bassil@vale.com

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), and the French Autorité des Marchés Financiers (AMF), and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

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Conclusion of Florestas Rio Doce Assets Sale