Vale Rises to Highest Since September on Tax Ruling: Rio Mover
Vale SA (VALE5), the world’s largest iron- ore producer, rose to its highest level since September after saying it obtained an injunction to block a court decision in a Brazil tax dispute.
The company’s preferred shares gained 2.6 percent to 42.69 reais in Sao Paulo, their highest close since Sept. 21. Vale has risen 13 percent since the beginning of the year, beating the 11 percent increase of Brazil’s benchmark Bovespa Index. (IBOV)
Vale obtained an injunction blocking an unfavorable court decision related to taxes over net income generated by its foreign subsidiaries, the Rio de Janeiro-based company said in a regulatory filing late yesterday. The case will return to Brazil’s board of tax appeals, an administrative office know as CARF, and may reverse previous rulings it must pay about 9.8 billion reais ($5.6 billion), according to the filing.
Other companies have won similar cases at the CARF, Marcos Assumpcao and Andre Pinheiro, analysts at Itau Corretora de Valores SA, said in a note today.
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