Xstrata is up hugely on bid talk, rising 185p, or 5.5%, to £35.73. Nothing new there, but shares in the mining group have risen quite substantially since last month - up around 25% since November 22 - on ongoing takeover speculation.
So far, the rumours have focused around a tie-up between Xstrata and Anglo American [up 145p, or 4.5%, at £33.81], but analysts had expected the former to take over the latter. After all, Mick Davis, Xstrata's chief executive, is known for his acquisitive streak.
But recently, the tables have turned and there has been talk that the larger Anglo might actually bid for Xstrata. Cynthia Carroll, Anglo's chief executive, needs an acquisition to releverage the group's balance sheet after the disposal of a number of businesses, including Mondi and Tarmac. But last week, rumours that Davis and Carroll had met were swiftly discounted.
Now, though, CVRD, the Brazilian mining giant, has come into the fray. The speculation is that it might be the one interested in Xstrata.
Whatever happens, it seems BHP Billiton's proposal to acquire Rio Tinto has sparked M&A rumours galore - rumours that may in fact end up as reality.
