The Rising Influence of Rising Affluence

[DewDiligence]

VALE scraps plan for fertilizer spinoff:

http://www.reuters.com/article/2011/06/22/vale-fertilizers-idUSN1E75L26I20110622

I was in favor of this spinoff if it meant monetizing VALE’s overvalued assets, and I thought fertilizer assets were indeed overvalued in Mar 2011 when the spinoff plan was announced (#msg-60633830).

Valuations in the fertilizer industry have now regressed a little, which is presumably why the spinoff has been nixed. Instead, VALE will buy out the minority shareholders for $1.4B.