Vale CFO: Xstrata Deal Is `Dead'

Cia. Vale do Rio Doce chief financial officer Fabio Barbosa said in an interview that the Xstrata deal was ‘dead’, and denied speculation that the deal may be revived after Chief Executive Officer Roger Agnelli said talks could restart ‘anytime’‘if Xstrata wants.’ Vale sought to buy Xstrata in a deal valued at $90 billion in a bid to overtake BHP Billiton Ltd. as the world's top mining company and play a bigger role in world copper and coal markets. Company spokesman Fernando Thompson confirmed that a $50 billion financing package had expired on March 31. And Vale may be considering cheaper acquisitions. HSBC, Citibank, Santander, BNP Paribas, Credit Suisse and Lehman Brothers Holdings Inc are among the banks that ever promised to provide help for the deal. Spinelli SA metals and mining analyst Daniel Goraveb said ``Vale is already looking at other companies,'' ``We expect the company will shortly be negotiating with other targets.'' COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.