Sterlite Industries India Ltd. (NYSE: SLT), which is already the largest copper and zinc producer in India, is getting bigger. That is, the company has agreed to purchase Asarco LLC (based in the U.S.) for about $2.6 billion. With the deal, Sterlite will get an estimated five million tons of copper reserves.

Basically, it's easier to mine for copper on Wall Street (with acquisitions) instead of digging into the ground. As a result, there were four suitors for Asarco (which, by the way, is in bankruptcy and is dealing with complex environmental liabilities).

Furthermore, with the surge in copper prices, there is definitely enough firepower to get deals done -- at high valuations.

This deal also points to another interesting theme: the aggressive M&A of Indian firms. For example, Tata Motors recently purchased Jaguar and Land Rover from Ford (NYSE: F). There was also Tata Steel's $12 billion acquisition of Corus Group.

And, it's a good bet we'll see a lot more deal-making. Simply put, India needs to snag more natural resources to facilitate its torrid growth rate.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Alexion Pharm (NYSE: ALXN) is a product developer of anti-inflammatory therapeutics, primarily for hematological and cardiovascular discords, autoimmune diseases and cancer. ALXN is recently up $1.35 to $73.81 on unconfirmed & renewed takeover chatter. ALXN has a market cap of $2.7 billion, with long-term debt of $176 million. ALXN had June 2007 total quarterly revenue of $9.6 million. ALXN November option implied volatility of 57 is above its 26-week average of 41 according to Track Data, suggesting larger risks.

Sterlite (NYSE: SLT), a non-ferrous metals and mining company based in India, is recently up $2.47 to $22.10. SLT call option volume of 3,868 contracts compares to put volume of 521 contracts. SLT November option implied volatility of 84 is above its six-week average of 51 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.