The rights of those investing in Brazil need to be protected, it is being claimed by one investment expert .
According to F&C, Votorantim Celulose e Papel's proposed takeover of Aracruz could come at the expense of those with minority investments in the firm's voting and non-voting stock .
It adds that though many of the signatories own neither of the stock and are not immediately affected by the transaction's terms they have raised concerns of the damaging affect it could have on the value of other Brazilian holdings and the nation's market confidence as a whole.
Karina Litvack, F&C's head of governance and sustainable investment, said as long-term investors in Brazil the firm welcomes the recent progress by many to protect the rights of shareholders but these developments are disappointing.
Ms Litvack called on the CVM to encourage both parties to act voluntarily to protect investment minorities.
"Corporate governance has been continuously improving in Brazil thanks to pressure from regulators and local investors. In this context it is especially disappointing that VCP has missed the opportunity to set a good example", added Urban Larson, a Latin American specialist and fund manager within F&C's emerging equities team.
F&C is a global asset manager managing more than £90 billion for 3 million customers worldwide.
Brazilian investment 'needs protection'
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Brazilian investment 'needs protection'
Wed, 27 Aug 2008
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