Ailing De Beers in stake sale talks with Anglo

The world's biggest diamond miner, De Beers, has held talks with its 45% shareholder Anglo American over the London-listed minerals giant taking a bigger stake in the group.

The discussions have taken place as De Beers attempts to restructure its finances in the face of declining global demand for its diamonds.

Consumers have been less inclined to buy precious stones in the financial crisis, while demand for industrial diamonds has also fallen as factory activity has slowed around the world.

De Beers managing director Gareth Penny said last week that sales were less than half of those a year ago.

It is thought the Anglo stake-buying plan is one of the options being suggested by De Beers management as it attempts to refinance a $1.5 billion (£904 million) loan facility by raising more cash from investors.

De Beers has also suggested its other shareholders, the Oppenheimer family and Botswana's Debswama Mining Company take new equity in the business.

Other options, according to the Bloomberg news agency, include shareholders simply injecting cash into the business in order to ease the concerns of De Beers' debt holders.

Anglo owns 45% of De Beers, the Oppenheimers 40% and Debswama the rest.