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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (13292)	1/21/2008 10:46:30 AM
From: LoneClone	Read Replies (1) \| Respond to of 194034

Vale eyes Xstrata in possible $90B deal The world's largest producer of iron ore is in 'dialogue' to buy the Swiss mining company, but wary of credit conditions. money.cnn.com January 21 2008: 10:18 AM EST SAO PAULO, Brazil (AP) -- Brazilian miner Vale said Monday it is in talks that could lead to a purchase of Swiss mining company Xstrata PLC, and two leading Brazilian newspapers reported the price could go as high as $90 billion. Companhia Vale do Rio Doce SA, the planet's biggest producer of iron ore, the raw ingredient in steel, said it has been "maintaining a dialogue" with the Swiss miner but that no deal has been reached. Vale also said it is analyzing several other options involving mining assets, but it did not specify them and said "these negotiations did not generate any concrete results yet." The company did not comment on the purchase price. Valor Economico and O Estado de S. Paulo reported that Vale wants to pay as much as $30 billion of the amount in stock. But Vale (RIO) confirmed that it is in talks with banks about financing expansion plans while maintaining a close watch on upheaval in international financial markets based on fears that the United States may be headed into a recession. "Vale considers that the current conditions prevailing in the global financial markets may constrain the realization of a major strategic move," the statement said. "Therefore it will keep the prudential posture that has been one of the hallmarks of its management over the years."