Anglo American is this weekend building its defences against a £41bn merger approach from Xstrata by plotting talks about a major Chinese investment and reigniting efforts to parachute Sir John Parker in as its new chairman. Anglo, which last week rebuffed a proposal from Xstrata to consider a merger of equals, is to open talks with Chinalco, the state-owned Chinese aluminium producer, and at least one unidentified Middle Eastern investor about a partnership that could see it inject hundreds of millions of dollars into MMX, Anglo's Brazilian iron ore business. The negotiations are at an early stage and there is no certainty that a deal will be reached, according to people close to the situation. The renewed attempt to recruit Sir John, who is understood to have been contacted by the Anglo board in recent days, underlines the... [read full story]
