Xstrata rejects 'bid' from Brazilian miner Vale

0 Comments | AFP, February, 2008

LONDON (AFP) — Anglo-Swiss mining group Xstrata has rejected an informal takeover approach from Brazilian peer Vale worth 76 billion dollars, a deal that would create the world's biggest mining company, the Financial Times reported Tuesday.

Vale's offer, worth 52 billion euros, is pitched at just under 40 pounds (54 euros, 78 dollars) a share, while Xstrata is holding out for about 45 pounds, said the FT, citing people close to the deal.

The share price of Xstrata was down 2.23 percent at 37.20 pounds in early London trading on Tuesday.

A combination of the two groups would create the world's biggest mining company, overtaking BHP Billiton, which has failed to woo the board of fellow Anglo-Australian miner Rio Tinto with an offer worth 147.4 billion dollars....