Story from MNN
The O Estado de S. Paulo newspaper has reported that Xstrata’s chief executive Mick Davis and the head of Glencore were heading to Brazil to try and find a solution in a “last ditch effort”.
According to a report on Reuters, both Vale and Xstrata declined to comment over any meetings between Vale, Glencore and Xstrata.
A source close to the talks told Reuters that a deal had not yet been finalised between the parties.
“As far as I know the negotiations were continuing with everyone sticking to their guns,” the source said.
Earlier this month, Vale reportedly threatened to abandon negotiations with Xstrata after Glencore demanded an extension of its agreements to sell commodities that Xstrata produces, such as coal and nickel. However these terms were not acceptable to Vale.
Vale’s chief executive Roger Agnelli said earlier this month that talks had been difficult since there were three parties involved in the proposal, namely Vale, Xstrata and Glencore.
“We have limits, we have reached our limits,” he said. “The problem is whether Glencore agrees to this [proposal] or not. It depends on Glencore’s position.”
Vale’s bid for Xstrata may be worth around $US90 billion.
