Xstrata plc (XTA)

Xstrata plc (XTA) - JPMorgan Cazenove

Amos Flecther, analyst at JP Morgan Cazenove, said he thought Friday's deal "makes the prospect of a merger less attractive for Xstrata shareholders as we believe Glencore would demand market value for 100pc of Prodeco". 

Xstrata plc (XTA) - Alison Turner at Panmure Gordon

Miners are once more a key influence on the market's early gains, with Xstrata moving higher on confirmation that commodity trader Glencore , a shareholder in the mining group , would buy back its Prodeco coal operations in Colombia for $2.25bn.Glencore sold the asset last year to raise cash but had an option to repurchase, which ran out last night. Alison Turner at Panmure Gordon said:The repurchase removes some of Xstrata's near term growth , we estimate that the Prodeco asset would have added 5% to Xstrata's growth profile, and as a result Xstrata is now targeting 50% growth in production by 2014 (rather than 2013). We remain cautious on the ability of Xstrata to meet this ambitious target, with the bulk of the projects required in order to do so still pre approval 

Xstrata plc (XTA) - Michael Shillaker at Credit Suisse

"It appears likely in our view that Glencore will exercise the option and take the asset out of Xstrata's hands," said Credit Suisse analyst Michael Shillaker. 

Xstrata plc (XTA) - Sam Catalano at Macquarie

Rio declared a dividend of 45 cents a share Rio Tinto, which has four employees including Australian Stern Hu facing criminal charges in China, joins rival Xstrata Plc in reinstating its dividend as the global economic recovery boosts demand for commodities Chief Executive Officer Tom Albanese has sold $103 billion of assets and $152 billion in shares since 2008 to help repay debt "This time a year ago, Rio Tinto was struggling under considerable debt," Macquarie Group Ltd analysts led by Sam Catalano said in a Feb 9 report 

Xstrata plc (XTA) - Rebecca O'Dwyer at Investec Securities

"We take this dividend as a sign of management's confidence in commodities demand and prices Xstrata has a big capex program over the next three years, and if it were concerned about cash flow it would not be returning capital to shareholders, in our view", said Rebecca O'Dwyer, Investec Securities Analyst Xstrata had, last year, announced that it would seek to raise £41 billion in a two for one rights issue to pay down the debts 

Xstrata plc (XTA) - Charles Kernot at Evolution Securities

The company also reinstated a dividend, of 8 cents "Xstrata's share price has fallen markedly from its recent peak and we believe that this has brought the stock back into attractive territory," Charles Kernot , an analyst at Evolution Securities, wrote in a note today, boosting his recommendation on the company to "add" from "sell" Zug, Switzerland based Xstrata gained 449 pence to 9949 pence by 9:50 am in London Citigroup Inc raised its price estimate for the company to 1,450 pence, from 1,100 pence "The medium term outlook for commodity demand remains very promising," Chief Executive Officer Mick Davis said in the statement 

Xstrata plc (XTA) - Citigroup Global

Xstrata, the mining company that has bought itself into the big leagues in under a decade, said on Monday it had entered a "next stage" of growth in which acquisitions would be played down in favour of developing its own projects. "We have no need to do 

Xstrata plc (XTA) - Charles Kernot at Evolution Securities

The sector led a small band of blue chip shares upward, despite fears that credit tightening by Beijing to limit a growth spurt might choke demand for metals such as copper. Xstrata topped the ranks of risers with a 26p gain to 1125p, Eurasian Natural Resources was hard on its heels with a 16p lift to 954½p, Kazakhmys was close behind with a 14p boost to 1294p and Anglo American was next up with a 17½p rise to 2505½p The rises cheered up a sector which has lost 17 per cent of its value in the past fortnight Evolution Securities analyst Charles Kernot said: "Sentiment is a bit battered and bruised People are worried China's going to take some rice out of the bowl" 

Xstrata plc (XTA) - Rebecca O'Dwyer at Investec Securities

Aviva . climbed to its highest level in nearly three months yesterday as dividend optimism combined with merger and acquisition speculation. Its shares rose 14 per cent to 414¾p after Morgan Stanley said investors were being too pessimistic about its 

Xstrata plc (XTA) - Tony Robson at BMO Capital Markets

XSTRATA SUDBURY The state of individual markets could play a part in whether workers are likely to strike At the end of January the contract comes up for renewal at Xstrata's Sudbury nickel copper operations in Canada and talks will be watched closely Nickel prices would rally, albeit temporarily, if workers take action But some analysts feel a strike is unlikely "The union may well see that going on strike can be a lengthy and costly exercise with nickel prices not particularly high and more global diversified companies willing to suffer extended periods of closures at their operations," said BMO analyst Tony Robson