MINING giant Anglo American is strengthening its defences against an unwanted merger approach from rival Xstrata by planning talks over a Chinese investment.
Anglo, which recently rebuffed the tie-up advances and branded the terms of the £42 billion deal "totally unacceptable", is to open negotiations with Chinalco, China's state-backed aluminium producer.
The talks are thought to centre on a partnersh
ip with the Chinese firm, along with at least one unidentified Middle Eastern investor, which would see hundreds of millions of dollars invested into Anglo's Brazilian iron ore business.
According to reports yesterday, negotiations are at an early stage and it is understood there is no certainty that a deal will be reached.
Meanwhile, National Grid chairman Sir John Parker was linked with taking on the same role at Anglo as the firm looks to find a big hitter for the top job to help it fight Xstrata's approach.
Other names in the ring were reported to be Jim Leng, who stepped down from his position at Rio Tinto earlier this year, and Jeroen van der Veer, the former chief executive of oil giant Royal Dutch Shell.
Last week, Swiss-based Xstrata described its offer as highly compelling given the pair's interests in multiple commodities and regions.
But Anglo rejected the formal merger proposal, citing a negative impact on its position in the platinum, iron ore and diamond markets and putting faith in its existing business strategy as an independent.
No-one from Anglo was available to comment yesterday.
