LOS ANGELES (MarketWatch) --Brazilian shares slipped Friday, with pressure on mining giant Companhia Vale do Rio Doce following its plans for a $1.6 billion assets purchase, while Mexican shares broke through losses that followed a report that U.S. economic activity shrank to its lowest levels since the 1980's.
Brazil's Bovespa index fell 0.9% to 39,300.79.
In Sao Paulo, shares of market heavyweight Vale (RIO) fell 1.7% after Rio Tinto (RTP) said late Thursday it would sell to Vale the assets of two potash projects for $850 million and an iron ore mine in Brazil for $750 million in an all-cash deal.
Vale is the world's largest producer of iron ore, a key component for the production of steel.
The company "has appeared to pay a healthy premium, despite Rio Tinto's pressure to de-lever, and we note Vale's debt will continue to rise given aggressive dividends, capex and (now) acquisitions planned for 2009," wrote metals and mining analysts at Deutsche Bank in a note Friday.
The broker maintained its hold rating on Vale and its price target of $12 for the miner's U.S.-listed shares. Vale's New York Stock Exchange-listed shares closed down 2.2% at $14.11.
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