Speculation is heating up that BHP Billiton Limited (ASX:BHP, NYSE:BHP, LSE:BLT) is advanced talks to buy Brazilian iron-ore producer Ferrous Resources Ltd in a deal worth more than $3 billion.
After first reports emerged earlier this week unidentified sources have now confirmed with Bloomberg that talks have taken place in Melbourne.
BHP is still yet to formally comment on the speculation but Bloomberg says the miner is considering the bid.
Ferrous is understood to be hunting potential bidders after it failed to list in London last year.
BHP Billiton generated a record net profit of $22.3 billion in the 2011 financial year.
