RIO DE JANEIRO--Brazil's MMX Mineracao e Metalicos SA (MMXM3.BR)
confirmed Thursday that controlling shareholder Eike Batista is in
talks to reduce his stake in the company but said no deal has yet
been signed, amid media reports this week that the negotiations are
advancing.
"There are ongoing negotiations that are at a stage which
confers no certainty as to their outcome," MMX Chief Executive
Carlos Gonzalez said in a statement. "At this moment, there is no
signed document."
A person familiar with the talks said this week that Mr. Batista
is nearing a deal to sell a controlling stake in MMX. Two leading
bidders have emerged: Swiss mining firm Glencore Xtrata PLC (GLNCY,
GLEN.LN, 0805.HK) on the one hand, and a consortium of Abu Dhabi's
Mubadala Development Company and Dutch trading house Trafigura
Group on the other.
Mr. Batista, once Brazil's richest man, has been forced to sell
off assets in recent months amid a severe crisis of confidence in
his corporate empire.
MMX's most coveted asset is a major port near Rio de Janeiro
that is expected to begin operating late this year and will have
the capacity to ship up to 50 million metric tons of iron ore per
year. The company's other main project, an expansion of the Serra
Azul iron-ore mine, is on hold to preserve cash.
Write to Paul Kiernan at paul.kiernan@wsj.com
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