Valor Economico, citing people close to the negotiations, reported that Vale is ready to bid for Xstrata Plc after it arranged as much as USD 50 billion in financing and concluded all necessary proceedings,

Valor said that Vale is waiting for the green light from the government, which wants control of Vale to stay in Brazil.

Valor said that Vale may pay for part of the purchase with its own shares and if Glencore International AG, which owns 34.5% of Xstrata, accepts an all share payment, it would become Vale's largest shareholder, though it wouldn't be a member of the controlling group.

Valepar SA, the company that controls Vale, is owned by Previ, the employee pension fund of state controlled Banco do Brasil SA, Bradespar SA, Mitsui & Co and BNDES Participacoes SA.

As per a recent UK's Sunday Times eport, Vale has arranged a USD 50-billion financing plan from international bank consortium led by HSBC and understood to include Santander, BNP Paribas, Lehman Brothers, Credit Suisse and Citigroup.