Vale in Talks With Xstrata

The Brazilian mining giant confirms negotiations with a rival.
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Brazilian mining outfit Companhia Vale do Rio Doce (RIO) - Get Report, or Vale, acknowledged Monday it was in talks with Xstrata after media reports said Vale planned to make a $90 billion bid for its rival.

In a statement, Vale said negotiations with Xstrata, which is based in Switzerland and listed on the London and Swiss Stock Exchanges, had yet to produce "any material result." The company added that it continued to evaluate other strategic options, including "different mining assets."

Vale's statement came after Brazilian newspapers, citing sources close to the company, said it was in advanced talks with banks to finance a takeover that could be worth as much as $90 billion, according to

Reuters

.

Vale used to be known by the abbreviation CVRD. Its American depositary shares finished New York trading Friday up 54 cents at $28.83. U.S. markets were closed Monday in observance of Martin Luther King Day.

This article was written by a staff member of TheStreet.com.