United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant To Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
December 2002
Valley of the Doce River Company
(Translation of Registrant's name into English)
Avenida Graca Aranha, No. 26
20005-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.)
(Check One) Yes No X
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(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b). 82- .)
This current report on Form 6-K is hereby incorporated by reference into the
Registration Statement on Form F-4 of Companhia Vale do Rio Doce and Vale
Overseas Limited, File No. 333-84696.
[COMPANHIA VALE DO RIO DOCE LOGO] Press Release
CVRD and ARCELOR Make Firm Proposal for Purchase of CST Shares
Rio de Janeiro, December 20, 2002 - Companhia Vale do Rio Doce (CVRD), the
world's largest producer of iron ore, and Arcelor, the world's largest steel
maker, inform that they made a joint proposal to purchase the stake of Acesita
S.A. (ACESITA) in Companhia Siderurgica de Tubarao (CST), the world's largest
exporter of steel slabs.
ACESITA holds 50.1%of the stock of Acos Planos do Sul (APS), who in turn holds
37.29% of the total capital of CST, a participation comprising 43.91% of
CST's common shares and 33.14% of CST's preferred shares. APS is part of
CST's shareholders controlling group, which also comprises CVRD, Kawasaki Steel
Corporation (KSC) and California Steel Industry (CSI). CST shares held by APS,
corresponding to 29.64% of its voting capital, are bound to the CST controlling
group's shareholder agreement. CSI is a North-American steel producer, whose
control is divided between CVRD (50%) and KSC(50%).
Arcelor holds 49.9% of the capital of APS, whereas CVRD holds 22.85% of the
total capital of CST, a stake made up of 20.51% of CST's common shares and
24.32% of CST's preferred shares.
CVRD and Arcelor are proposing to pay to Acesita an average price of US$ 21.58
per 1,000 shares. To purchase ACESITA indirect participation in the voting
capital of CST, bound to the control of the latter, KSC and CSI must waive their
rights of first refusal to acquire the aforementioned shares.
CVRD and Arcelor may examine the possibility of jointly making the purchase of
stakes of other CST shareholders, including KSG and CSI.
CVRD and Arcelor agreed to speed up all the studies needed to begin the building
of CST third blast furnace in order to start up its operations in 2006.
The increase of CVRD's stake in CST is structured so that CVRD may reduce it
significantly in the future. Therefore, CVRD's increased stake in CST has a
transitory character.
The proposed transaction reflects CVRD's already manifested intention to help
the restructuring of the Brazilian steel industry to make feasible a healthy
growth process, creating opportunities for expanding CVRD's iron ore and
pellets businesses.
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For further information,please contact:
Roberto Castello Branco: roberto.castello.branco@cvrd.com.br +55-21-3814-4540
Andreia Reis: andreia.reis@cvrd.com.br +55-21-3814-4643
Barbara Geluda: barbara.geluda@cvrd.com.br +55-21-3814-4557
Daniela Tinoco: daniela.tinoco@cvrd.com.br +55-21-3814-4946
Eduardo Mello Franco: eduardo.mello.franco@cvrd.com.br +55-21-3814-9849
Rafael Azevedo: rafael.azevedo@cvrd.com.br +55-21-3814-4700
This press release may contain statements that express management's expectations
about future events or results rather than historical facts. These
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those projected in forward-looking
statements, and CVRD cannot give assurance that such statements will prove
correct. These risks and uncertainties include factors: relating to the
Brazilian economy and securities markets, which exhibit volatility and can be
adversely affected by developments in other countries; relating to the iron ore
business and its dependence on the global steel industry, which is cyclical in
nature; and relating to the highly competitive industries in which CVRD
operates. For additional information on factors that could cause CVRD's actual
results to differ from expectations reflected in forward-looking statements,
please see CVRD's reports filed with the Brazilian Comissao de Valores
Mobiliarios and the U.S. Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPANHIA VALE DO RIO DOCE
(Registrant)
Date: December 23, 2002
By: /s/ Fabio de Oliveira Barbosa
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Fabio de Oliveira Barbosa
Chief Financial Officer