ANGLO AMERICAN PLC

A massive magnitude-8.8 earthquake struck south-central Chile early on Saturday, killing at least 85 people, knocking down buildings, homes and hospitals, and triggering a tsunami.

European stock indices edged mostly higher in this quiet trading day, led by financial and commodities firms.

Top diamond producer De Beers bolstered its balance sheet on Thursday with a $1 billion rights issue and bank refinancing as it swung to a annual $220 million underlying loss after demand plummeted for luxury goods.

De Beers, the world's largest diamond producer, expects banks to renew its $1.5 billion debt facility before it comes due in March next year, the firm said on Friday.

Anglo American, pressured by investors after an abortive merger bid from rival Xstrata, could offload its zinc operations first in a fresh divestment drive that could raise $6 billion.

Miner Xstrata Plc has given up its pursuit of rival Anglo American, it announced on Thursday, leaving Anglo to push ahead with its own restructuring plan and raising questions about whether Xstrata will revisit former target Lonmin.

Chinese steel and iron ore group Baosteel has proposed to pay 1 billion pounds ($1.6 billion) for a 30 percent stake in Anglo American's huge Minas Rio iron ore mine in Brazil, according to a report on Sunday.

Billionaire hedge fund manager John Paulson's big stake in AngloGold Ashanti is a strand of his heavy exposure to gold and not designed to gain from the slim chance of a merger bid.

Two major Anglo American shareholders have backed new Chairman John Parker's bid to buy time and stave off rival Xstrata's nil-premium merger proposal, which one said on Tuesday was effectively dead.

China, bruised by the collapse of a proposal to buy a Rio Tinto stake, could confine itself to project-level deals with miners to feed its hunger for metals and shun company acquisitions to avoid further loss of face.

Mining group Xstrata Plc, due to post sharply lower first-half profits next week, is expected to hold back from using the occasion to launch a new initiative in its wooing of Anglo American.

De Beers, the world's top diamond producer, said demand should pick up in the second half meaning it will not need more shareholder loans, when reporting tough markets had all but wiped out first-half profit.

Anglo American Plc appointed veteran industrialist John Parker as chairman on Friday, moving to bolster its leadership as it seeks to fend off an unwanted merger proposal by rival Xstrata Plc .

Mining group Xstrata confirmed its $1 billion estimate of synergies for its proposed merger with rival Anglo American after its advisors were quoted in newspapers saying the number could be much higher.

Miner Anglo American is considering finding a partner for its huge iron ore project in Brazil, including from China, but the move is not a defense against an unwanted merger approach from rival Xstrata , sources familiar with the situation said on Monday.

Anglo American is building its defenses against a 41 billion pound ($67.74 billion) merger approach from Xstrata by plotting talks about a major Chinese investment, the Sunday Telegraph reported.

Mining group Xstrata put more pressure on takeover target Anglo American Plc to come to the negotiating table on Wednesday by releasing details of its proposal, including cost savings of $1 billion.

Shares in Anglo American Plc, which rejected a $68 billion merger approach from rival Xstrata Plc, edged higher on Tuesday on market talk of a possible bid from Aluminum Corp of China (Chinalco), dealers said.

Anglo American rejected rival mining group Xstrata's merger of equals proposal on Monday, knocking a no-premium marriage and a combination with what it regards as Xstrata's inferior mines.

Top shareholders in Anglo American brushed off rival Xstrata's plan for a merger of equals on Monday and pressed for a big premium to create a giant to compete in a consolidating mining sector.

Shares in Anglo American Plc jumped as much as 12 percent on Monday after rival Xstrata Plc sought talks about a merger of equals to better compete in a consolidating mining sector.