Xstrata, Vale takeover talks seen at impasse
Anglo-Swiss miner Xstrata and Brazil's Vale have been in serious talks over a 46 billion pound takeover but the miners appear to have reached an impasse, the Financial Times said.
Companies talk takeovers, but will they get done?The newspaper said on Friday Vale believes Xstrata shares are worth 40 to 42 pounds a share but Xstrata's leading shareholder Glencore - which holds a 35 percent stake - believes the talks should be about a bid in the 45 to 48 pound range.
Shares in Xstrata closed at 38.52 pounds on Thursday.
The FT added that given Vale would pay up to two-thirds of any deal in shares, the divergence in the two miners' shares in recent weeks is a problem.
Xstrata's stock has risen 6 percent since it announced in December it was in talks with a number of parties, while Vale shares have dropped more than 11 percent.
Xstrata had no immediate comment on the FT report.
(Reporting by Mike Elliott; Editing by David Holmes)
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