The board of Canadian miner Inco has recommended that the company's shareholders reject a hostile bid from Brazil's Companhia Vale do Rio Doce, heralding tough negotiations ahead for CVRD's four advisers.

Credit Suisse, UBS Investment Bank, ABN AMRO and Banco Santander are providing financial advice and financing for CVRD's proposed C$17bn ($15.3bn) bid for Inco. If a deal were to go ahead, it would be the largest ever acquisition by a Brazilian firm.