Opinion on  Xstrata plc (XSRAF)
Bullish on XSRAF ...

A takeover of Xstrata, the Anglo-Swiss mining group, by Vale, its Brazilian rival, could be announced during the carnival celebrations in Brazil, which run until Wednesday.

A deal would create the world's biggest mining company and turn Vale, already the world's biggest producer of iron ore, into a fully diversified global player. It would come at a time when strong global demand, especially from China, is likely to produce a 40-50 per cent rise in iron ore prices this year.