Vale (RIO) Raising $15 Billion - More Acquisitions on the Way?

Vale (RIO), the Brazilian mining giant, is back in the market raising a new round of capital via shares. After stepping away from a huge acquisition earlier this year [Mar 26: CVRD Pulls Out of Xstrata Deal] is Vale sniffing around at new prospects? Freeport-McMoran Copper (FCX), a former fund holding, would be an interesting fit to round out the portfolio with its heavy copper exposure, and Anglo American is a quite diversified co with strengths in areas Vale does not dominate (although that would just be an enormous purchase). I'd not be so hot on the Alcoa purchase if that is the target. But in a World of Shortages, those who own the hard assets will win in the end.

• Brazilian mining giant Vale said on Tuesday it would sell up to $15 billion in shares to help finance growth in its existing businesses and potential acquisitions, but denied it was in takeover talks. It said it would use the proceeds from the offering to finance growth in its existing businesses, often called organic growth, and potential acquisitions, as stipulated in its current $59 billion investment plan.
• The announcement was made on the same day that O Estado de S.Paulo newspaper reported that Vale (RIO) was working on a bid of more than $30 billion for one of the world's largest mining companies.
• The report, citing unnamed sources close to the company, said Vale would issue shares to finance the acquisition. The newspaper named three potential takeover targets: Anglo American, U.S.-based Freeport-McMoRan Copper and Gold (FCX), and U.S. aluminum giant Alcoa Inc (AA).
• Vale stressed, however, that it was not currently negotiating any "strategic acquisitions."
  
• Vale, already the world's largest producer and exporter of iron ore, has been aggressively branching out into other metals in recent years to diversify its revenue base.
• Since Roger Agnelli took over as chief executive in 2001, Vale has completed 14 acquisitions, including the $18 billion takeover of Canadian nickel producer Inco in 2006.
• Anglo American's market value is almost $85 billion, Alcoa's is nearly $32 billion and Freeport is worth just over $44 billion, according to Reuters company data.
• "Freeport makes sense," said Charles Bradford, a mining analyst with Bradford Research/Soleil. "It is in line with what Vale has been saying it wants."
  

Long Vale in fund; no personal position

[note CVRD is the label tag for Vale as I've known it as Companhia Vale do Rio Doce]