Xstrata shares drop after Vale acquisition bid fails
26-03-2008
Shares in the mining group Xstrata fell today after an acquisition bid from Vale collapsed.
Xstrata shares dropped seven per cent - down 260p - on the London Stock Exchange after the companies announced that talks of a deal had been discontinued.
Fellow mining company Vale had put forward an indicative proposal that included a cash and shares offer for 100 per cent of Xstrata.
Vale said this deal would have created significant value for both sets of shareholders.
Discussions ended however after the two companies failed to reach an agreement.
Xstrata chief executive Mick Davis commented: "While Vale and Xstrata continue to believe that a combination of the two companies could realise significant value for both sets of shareholders, we have not been able to reach agreement.
"We have therefore mutually decided to cease discussions."
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