According to JPMorgan Chase & Co, Cia Vale do Rio Doce which is planning to sell USD 15 billion in stock to fund possible acquisitions, is most likely to acquire Freeport McMoRan Copper & Gold Inc.

Mr Rodolfo R De Angele an analyst in a note to clients said that while Freeport McMoRan is the most likely acquisition candidate, Vale has not ruled out Xstrata Plc though that would require the company to make a second share sale.

Mr De Angele said that “We see limited downside to Vale's share price at this point. Stock prices suffered recently as investors priced in the risk of an equity offering in a consolidation move and also negative marginal news flow mainly declining nickel prices into valuations.''

Freeport McMoRan is the world's largest publicly traded copper producer.