June 8, 2016 / 4:41 PM / 2 years ago

UPDATE 1-Brazil's Vale says no plans within company to change CEO

(New throughout, adds analyst comment, changes dateline previously SAO PAULO)

RIO DE JANEIRO, June 8 (Reuters) - Brazilian mining company Vale SA said on Wednesday there have been no attempts within the company to remove Chief Executive Murilo Ferreira, responding to local media reports that his job was under threat.

In a securities filing, Vale said the dismissal of Ferreira had not been discussed at the world’s largest producer of iron ore, and it had not received any communication from controlling shareholders about a desire to change CEO.

Valor Economico reported last week that the new government of Interim President Michel Temer was looking to oust Ferreira because he is regarded as too closely allied to suspended President Dilma Rousseff who hand-picked him for the job in 2011.

The government did not respond to a request for comment on the Valor report.

A government move to replace Ferreira would be controversial as Vale is a private company and supposedly free from state intervention.

However, Ferreira’s predecessor, the late Roger Agnelli, was pushed out during Rousseff’s first term after the government exerted pressure through state pension funds that have seats on Vale’s board.

Analysts at BTG Pactual on Tuesday expressed concern over the potential removal of Ferreira, saying it would increase the perception of political risk at the company.

“We see no need for a management change at this point, which could end up being value destructive for shareholders,” the analysts said in a note to clients. (Reporting by Guillermo Parra-Bernal in Sao Paulo and Stephen Eisenhammer; Editing by Matthew Lewis)

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