Bloomberg quoted Mr Sergio Rosa president of Previ as saying that it wants Vale SA to invest in steel production.

Mr Rosa, who is also Vale's chairman, said that Brazil will need more steel in the future because of the development of its oil industry and infrastructure investments.

He added that Previ isn't in talks to sell its stake in the company. The fund has until 2014 to comply with a regulation that requires Previ to reduce its holding in Vale.

It may be noted that Previ lost about BRR 20 billion during the market crisis and is close to recovering all those losses.

(Sourced from www.bloomberg.net)