Xstrata

If Xstrata can find the money for a premium, shareholders are likely to force Anglo's management into talks.

However, Mick Davis, chief executive of Xstrata, indicated that his company continued to eye Anglo.

Vale, Brazil's biggest mining group, was forced to admit yesterday it was in talks over a takeover of its Anglo-Swiss rival Xstrata.

If Xstrata's deal involves helping an old friend, Rio is supping with its toughest customers.

Top Anglo shareholders rejected Xstrata's call for "a merger of equals, " betting that initial proposal was just an opening play.

Xstrata, one of the world's biggest mining firms, was born out of the initial public offering (IPO) of Glencore's coal mines in 2002.

With few big firms left to target and loans harder to come by, Xstrata announced last month that it would concentrate on organic growth.

Insiders say Parker is implacably opposed to a deal with Xstrata on the basis of the terms outlined four months ago.

The game's complex rules may remind him of Xstrata's intertwined relations with its biggest shareholder, Glencore.

So, too, will the deal on tax that she struck with BHP Billiton, Rio Tinto and Xstrata, Australia's three biggest mining companies.

The top payer among the publicly listed companies, Xstrata, a global mining group, spent only $245m.

Xstrata, the Anglo-Swiss metals group, has been widely rumoured as a rival bidder for Falconbridge and already owns 19. 9 per cent of it.

IN HIS early teens, long before going in to bat as boss of Xstrata, Mick Davis qualified as South Africa's youngest-ever cricket umpire.

Xstrata proved as much with a cheeky cash call last month.

To ease Chinese antitrust concerns, Glencore said it would sell a Peruvian copper mine currently owned by Xstrata.

It already refers to Xstrata as a "sister company" and regards an eventual merger as a foregone conclusion.

If Anglo's current attempts at restructuring founder, its shareholders may welcome renewed interest from Xstrata.

Xstrata, another highly indebted miner, announced a heavily discounted rights issue last Thursday.

Citing uncertainty about the tax, Xstrata, a Swiss-based company, has suspended further exploration in Queensland, where it mines copper.

To fill Glencore's pockets, Xstrata has agreed to buy a Colombian mine from it, and to give it the option to buy it back within a year.

A unit of Xstrata, the London-listed miner, said it had agreed to sell its 19. 99 per cent stake in Indophil.

Xstrata predicted imports of thermal coal would grow strongly in those countries where domestic supplies could not meet demand.

Neither company offered details of terms, including whether Xstrata proposed to offer cash or shares.

London-listed Xstrata, another mining company with interests in the Andean nation, slid 1 per cent in a rising market.

That said, displeasure in Brasilia may have nudged Vale into ending negotiations to take over Xstrata, a Swiss mining firm, in 2008.

Glencore also has extensive direct interests in mining companies including a 35 per cent of the London-listed Xstrata.

It is the largest shareholder in Xstrata, the UK-listed mining group currently buying Falconbridge of Canada.

For months, they have pointed to the benefits of combining Xstrata's management with Anglo's superior assets.

Once the IPO establishes a value for Glencore's shares, it will be much easier to convince Xstrata's other investors to swap.

Some analysts believe Xstrata or a third group might yet step forward with a better offer for Falconbridge.

Vale, meanwhile, is pursuing a possible merger with Swiss miner Xstrata PLC.

Glencore agreed to sell this asset to Xstrata for $2bn in January to take up its share of Xstrata's rights issue.

The more aggressively managed Xstrata could change that.

Xstrata Coal is also understood to have looked at Felix.

Mr Pannell said Falconbridge had held talks with Xstrata.

Xstrata, though, remains caught in a Catch-22 situation.

But according to documents that went to Xstrata's board on Sunday evening, Glencore has stopped short of taking such an aggressive tack.

Analysts estimate annual cost savings of a combined Anglo-Xstrata at $700m to $1. 7bn.

Xstrata expects $120m of annual cost savings from the deal.

Rio Tinto's net earnings almost tripled in 2010, while net profit at Xstrata rose by 86%.

It also explains why Xstrata and Anglo American operate so many different kinds of mines.

Like fellow global miners Rio, Anglo American and Xstrata, BHP was hit hard by the weakening US dollar last year.

Xstrata's skill has been in buying lower-quality mines and running them more efficiently.

Xstrata's founding 35% shareholder Glencore, a privately held trading firm, lacks the cash to take part in the $5. 9 billion rights issue.

Xstrata Plc jumped 5 percent to 1, 356 pence.

Xstrata PLC reduced its net debt by 38% to $7. 64 billion from $12. 3 billion.

Glencore had sold the mine to Xstrata last year for $2 billion, to raise the funds to participate in Xstrata's rights issue.

Xstrata, the world's fourth-largest copper producer, advanced 2. 2 percent to 1, 236. 5 pence.

Xstrata Plc dropped 3. 5 percent to 1, 411 pence.

Then there is platinum miner Lonmin in which Xstrata acquired a near 25 per cent stake last year.

BHP, Xstrata, Anglo Coal Operations Hit by South African Rains