UPDATE 4-Brazil's Usiminas taps Leite as CEO in sign of easing dispute

jueves 26 de mayo de 2016 06:45 GYT

* Brazil's Usiminas appoints Sergio Leite as CEO

* 6 of Usiminas 11 board members voted for Leite -source

* Nippon Steel to take legal action to get decision annulled (Adds Nippon Steel comment in paragraph 4, bullet points)

By Guillermo Parra-Bernal

SAO PAULO, May 25 (Reuters) - Usinas Siderúrgicas de Minas Gerais SA tapped veteran executive Sergio Leite as chief executive officer on Wednesday, as Brazil's largest listed flat steelmaker battles to revive a business hurt by a recession, cheap imports and rising debt.

In a securities filing, the board of Belo Horizonte, Brazil-based Usiminas approved a management shuffle in which Ascanio de Figueiredo Silva was picked to replace Leite as senior vice president for sales. Ronald Seckelmann will remain as chief financial officer, the filing said.

Reuters reported earlier in the day that six of Usiminas' 11 board members had voted to elect Leite. A source who spoke under condition of anonymity said three board members voted against Leite's nomination and the rest abstained.

Shareholder Nippon Steel said that the resolution for the appointment of the CEO was made without its consent and it intends to take legal action to get the decision annulled.

While the decision may not mark the end of the disagreements between controlling shareholders Nippon Steel & Sumitomo Metal Corp and Techint Group, analysts said that Leite's appointment could signal that the two-year rift for control of the ailing steelmaker is easing.   Continuación...