Vale takeover of Xstrata reaches impasse
by Gill Montia

Vale’s takeover talks with Xstrata appear to have reached an impasse despite the fact that all parties, including Xstrata’s biggest shareholder, Glencore, are keen for the acquisition to proceed.
Analysts are expecting the Brazilian mining group to pay over $100 billion for Xstrata, however, a problems has arisen because of movements in the share price of both firms.
Following the commencement of talks in late January, Xstrata shares have risen 13%, while Vale’s stock has remained static.
It is understood that the share values are central to negotiations because Vale would pay for more than half of the value of Xstrata with its stock.
It is reported that Vale is offering £40 but Glencore, which holds a 35% stake in Xstrata, is looking for £45 to £48.
Vale is seeking to diversify its business, which is mainly iron ore, and a merger with Xstrata would expand its presence in copper and nickel.
In fact, the combined firm would be the world’s largest nickel producer, ahead of Norilsk Nickel of Russia.
Should the deal proceed, Glencore plans to roll over its supply agreements with the merged firm and possibly expand them.
The acquisition could be the largest ever made by a Brazilian company.
Add to Bookmarks:
Related posts to: Vale takeover of Xstrata reaches impasse
Vale eyes major takeover target ...
Vale and Xstrata seek other opportunities as merger plans fail ...
Oxiana launches friendly takeover of Zinifex ...
Consolidation trends gather pace ...
Allegiance upgrades Avebury nickel resource ...
Latest Metals News:
Copper prices fall on inventories, US housing data
Copper, aluminium gain after early declines
Gold drops half a dollar in New York
Copper pares gains on US retail data
Copper, aluminium inventories continue to climb
Alcoa delays expansion at Wagerup and cuts production
Platinum, palladium down on auto sector problems
China’s stimulus plan sends most metals higher
Western Areas reports on high grade nickel at Spotted Quoll
Rio looks for Chinese joint venturesPrevious: « Fortune Valley drills Porphyry Copper
Next: Steep rise in silicosis in South African gold mines »
Visited 1275 times, 3 so far today