Talks between Vale, the Brazilian mining group, and UK rival Xstrata, over a potential takeover have reached an impasse after Vale failed to win the support of Xstrata’s biggest shareholder, according to people familiar with the situation.

Glencore, a Swiss metals trader, owns 35% of Xstrata. As part of any deal, it is understood to want marketing rights for Vale’s non-ferrous metal output for a ten year period. Vale instead offered a five-year contract, excluding future projects.

According to UK takeover regulation, Xstrata's independent shareholders would be allowed to vote on any side-deal with Glencore.

1 Feb 2008 -

Swiss role