Xstrata still in Vale talks

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The world's fifth biggest mining group by market capitalisation, the Anglo-Swiss group said net profit for 2007 rose to $5.54 billion (2.8 billion pounds) from $4.89 billion in 2006.

This was slightly short of expectations of a 15 percent rise in profit to $5.63 billion, according to the average forecast of nine analysts polled by Reuters Estimates. Forecasts ranged between $4.96 billion and $5.99 billion.

Xstrata, with headquarters in Switzerland and listed in London, produced record amounts of coking and thermal coal, ferrochrome, nickel, zinc and platinum in 2007.

Revenue rose 12 percent to $28.54 billion while earnings per share before discontinued operations and exceptional items also rose 12 percent to $5.60.

Xstrata's suitor Vale said on Friday it had reached its limits in takeover talks and added any future deal depended on Xstrata's main shareholder Glencore and its stance over marketing rights.

A possible acquisition could be worth an estimated $90 billion, which would make it one of the world's biggest takeovers.

LOOKING AT OPPORTUNITIES

Xstrata made only a brief mention of the talks in its results statement, saying: "Discussions with Vale are ongoing and may or may not lead to an offer for Xstrata."

The company was still on the lookout for ways to boost value for shareholders, it added. "We continue to assess a range of opportunities to continue Xstrata's success to date in delivering superior value to shareholders."

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