The deal would also have made savings from merging Vale and Xstrata's neighbouring Canadian nickel assets. But the Financial Times reported Xstrata was demanding a higher offer based on the improving outlook for coal and copper. Vale has reserved its right to make an offer for Xstrata within the next six months if it receives a board recommendation from the Anglo-Swiss miner, if a third party bidder emerges or if Xstrata attempts to bid for Vale.