LONDON, Oct 16 (Reuters) - BHP Billiton , the world's biggest miner, is close to launching a 2-billion-pound ($3.2 billion) bid for Brazilian iron ore miner Ferrous Resources, the Sunday Times reported.
The newspaper, without citing sources, said talks between BHP and Ferrous Resources started earlier this year and had stepped up in recent weeks.
Another option was for BHP to take a stake in Ferrous Resources rather than launch a full takeover, it cited unidentified sources as saying.
BHP declined to comment, while Ferrous Resources could not immediately be reached for comment.
Ferrous Resources abandoned a London flotation last year that would have valued it at over $3 billion. ($1 = 0.633 British Pounds) (Reporting by Mark Potter; editing by Sophie Walker)