Oct. 13 (Bloomberg) -- MMX Mineracao e Metalicos SA, the iron-ore miner controlled by Brazilian billionaire Eike Batista, extended the longest winning streak in two and a half years on speculation of rising metal demand and prospects of a takeover.

MMX gained for a 13th day in Sao Paulo trading, rising 5 percent to 13.44 reais. The stock has jumped 31 percent in the advance since Sept. 23, the longest rally since February 2007.

“The iron ore market improved and there’s been more talk of M&A in the future,” said Marcos Assumpcao, an analyst with Itau Unibanco Holding SA in Sao Paulo. “MMX is being seen as a potential M&A player” in the next couple of years.

The Baltic Dry Index, a measure of shipping costs for commodities, last week posted its biggest gain in almost three months on rising demand to ship iron ore to steelmakers in Europe and China. Iron ore spot sales will keep rising amid uncertainty over the future of the annual benchmark pricing system, Clive Murray, chief executive office of London Commodity Brokers Ltd., said in a Bloomberg Television interview today.

The London Metal Exchange index of six industrial metals surged 72 percent this year, prompting Bank of America Merrill Lynch and Standard Bank Plc to flag more mining acquisitions.

MMX has rallied 385 percent in 2009, the most in the benchmark Bovespa index, amid speculation an offer to sell a stake in the company may attract several bidders. Wuhan Iron and Steel Group, China’s third-largest steelmaker, in June offered to buy a stake in MMX and a unit for $400 million. Batista said in March he was seeking to sell all or part of the company.

A Rio de Janeiro-based outside spokesman for MMX declined to comment on the speculation.

To contact the reporter on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;

Last Updated: October 13, 2009 17:09 EDT