Xstrata is a major global diversified mining group. Xstrata maintains a meaningful position in six major international commodity markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Groups operations and projects span four continents and seven countries: Australia, South Africa, Spain, Germany, Argentina, Peru and the UK.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Coal:       42%
Copper:    25%
Zinc:       18%
Chrome:   10%
Vanadium: 4%
Others:     1%

From today's Sunday Times:

"Senior banking sources said Vale was close to tabling an offer for Xstrata of 46 a share. A deal at that price would value Xstrata at 44 billion. Xstrata shares closed the week at 40... Analysts say the greater the share element in the offer, the higher the bid price will have to be. Advisers to Vale last week sounded out hedge fund and other investors - including Blackrock and Marshall Wace - about a 46 offer, but some City institutions are holding out for closer to 50."

For full article click below:
Xstrata mega deal nears

From this evening's bulleting from ADVFN:

"Xstrata was 47 higher at 4,135 on rumours that Anglo American was to bid 5,000 pence a share for the group."

The rumour could explain the sudden surge at the end of the day.

the latest report is that Glencore and Vale cannot agree terms and thus Vale's bid may very well collapse .... hence sp reaction down to 3950 this morning.

arguably an interesting punt at this level ..... for myself, i still hold some which i rashly bought a couple of weeks at 4175 and am glad i took a modest profit yesterday afternoon on a smaller number

"Xstrata: Glencore on the brink" appeared in today's MAM round up from Lombard (FT) ..... as this publication has no topless models, i do not read it, so please can someone expand - i.e. on the brink of walking away from each other or actually agreeing a deal?

this morning's sp has scarcely moved, so no clue there!

This in today's Times - Cynic you probably don't read that either, if the above is anything to go by, so just click on the link below:

Falling shares nudge Vale towards dropping Xstrata pursuit

Sp currently 3740p.
Have seen a current valuation of 3400p per share if the Vale bid fails. 5000p if it succeeds. Don't currently hold, difficult decision, but the upside is looking appealing.

5000 is wildly optimistic ..... Vale started at 4000 and were then persuaded to 4500, but ..... no one else currently in the frame

bugger .....

Companhia Vale do Rio Doce said late Tuesday it has halted negotiations to buy rival mining company Xstrata Plc.

The Brazilian company said it put forward a cash-and-shares offer for Xstrata which it believes would have created 'significant value for both sets of shareholders.'

'Given that an agreement was not reached, discussions between the parties have been discontinued,' the company said in a release.

Bit of a bore, as you say Cynic....

advised that opening forecast to be down 4.00 at 33.00

bit the bullet at 3350 .... could have been far worse .... thank goodness i only had a fairly sensibly sized holding

i would not be surprised to see XTA continue to fall, for though sp has taken a big whack, it is very possible there will be some heavy players now being forced to sell ...... this could also impact the market in general

I hate Chinese and Indian companies. They buy British assets at low prices. Clear expamples are Corus, Rover (1), Invensys assets (1), and now Jaguar and LandRover.
The Invensys assets (CompAir) is being sold at 200mln after five years. They certainly laugh at ISYS shareholders and praise the City Analysts.

What has that got to do with XTA, VALE or the mining sector?

XTA worth more than the offer.... should get there on its own. IMO

Cynic, if you are holding XTA again, this might cheer you (from a MAM general FSTE update):

"Xstrata bucked the trend that saw commodities stocks moving lower, taking on 14p at 3,488p, after the CEO of its Brazilian suitor, Vale, said at a news conference that negotiations could resume between the two companies.

Xstrata was also helped by Citigroup resuming coverage of the mining group at 'buy' and lifting its price target to 4,500p from 4,000p, saying it believes a future tie-up between the two groups remains a distinct possibility, but even without a deal it sees underlying value in Xstrata."

i took a profit this morning .... having been whacked by IEC's jolly news, i thought a little defensive action sensible

A bit surprised you sold XTA this morning. Sp is approaching the 200 DMA, which has shown good support in the past. A few of the earlier peaks have been due to M&A rumour, but if it does bounce off the 200 DMA then I would hope to see it achieve 3600p, particularly if Toya is right.

i bought yesterday merely on spec and to take a quick turn ..... the pasting i have taken on IEC also influenced my decision

Sorry to rub salt in the wound:
"LONDON (Thomson Financial) - Shares in Xstrata Plc. were higher early morning after Citigroup resumed coverage on the group with a 'buy' stance and raised its price target on the group to 4,500 pence from 4,000 pence, market sources said."

no prob .... a profit's a profit