"Xstrata was in focus, with The Daily Telegraph hearing talk that Glencore, Xstrata's main shareholder, has entered discussions with a group of mystery Chinese investors. It is said that Glencore is looking to sell its 35pc stake to a Chinese fund, possibly China Development Bank, for cash. Glencore's shareholders, which include Ivan Glasenberg, would then sell Glencore to Xstrata for shares, ending up with a 20pc stake in Xstrata.
However, such a deal may be tricky to pull off if Brazilian group Vale, which is thought to be carrying out due diligence, makes good with a £40-£45-a-share indicative offer for Xstrata. Xstrata shares fell 130p to £30.97."
