BHP Said to Be in Takeover Talks With Iron-Ore Miner Ferrous

BHP Billiton Ltd., the world’s largest mining company, is in talks to buy Brazilian iron-ore producer Ferrous Resources Ltd., said two people with knowledge of the matter.

No final decision has been made on a transaction, which could fetch about 2 billion pounds ($3.2 billion), said one of the people, who declined to be identified as the process is private. Discussions have taken place in the past few weeks in Melbourne, where BHP is based, after negotiations with a Chinese suitor broke down, one of the people said.