It is reported that shares of Freeport-McMoRan Copper & Gold Inc climbed by nearly 4% after a Rio De Janeiro iron ore producer denied rumors that it is planning to take over the company.

Mr Fernando Thompson a spokesman of Companhia Vale do Rio Doce SA said that they have been evaluating the possible acquisition of Paranapanema SA subsidiaries, Caraiba Metais SA and Cibrafertil.

Mr Thompson in a statement to the Associated Press said that "Rumors that Vale would have made an offer for Freeport are totally baseless.”