Reuters reported that the nickel business of Vale SA (NYSE:VALE) is a good target for Mick Davis, former CEO of Xstrata. However, his reported offer price of $5 to $7 billion is considered to be low.

As quoted in the market news:

On Tuesday, Bloomberg reported that Davis, who runs London-based mining startup X2 Resources, is considering a $5 billion to $7 billion offer for Vale’s nickel assets.

A spokesperson for Vale, the world’s second-largest producer of nickel, told Reuters on Tuesday no offer had been received and no talks held.

Citigroup analyst Alex Hacking stated:

Any offer at this level … would be far too low for Vale to consider, in our view.

Click here for the full Reuters report