Xstrata confirms Vale takeover talks
MINING company Xstrata confirmed yesterday that it is in talks to be taken over by Brazil’s Vale do Rio Doce as it announced a 13.5% rise in full-year net profit. The Anglo-Swiss company said the talks “with Vale are ongoing and may or may not lead to an offer for Xstrata.” Brazilian media have reported that Vale could pay as much as $90bn (£45.3bn) in cash and stock for Xstrata, though neither side has so far given any concrete figures. Any deal would require approval from Glencore International, which owns more than 34% of Xstrata’s shares. Xstrata said net profit last year reached $5.54bn, up from $4.89bn in 2006. Analysts had forecast a slightly lower annual net profit.