More Australian Takeovers?: A New M&A Season in Progress?
Source: Mineweb (7/18/07)
...the Australian rumour mill is now posing arguments for the takeover of Paladin Resources by Canada's global uranium giant Cameco, and for Oxiana to be a target for Melbourne-based global lead-zinc giant Zinifex Ltd and Canada's Teck Cominco.
One factor being cited for both Paladin and Oxiana to be targets are that by having the ASX as their home bourse they are considered to have low-price earnings ratios, particularly to North Americans.
In a report released today UBS Investment Research said that while Cameco's intentions are obviously unknown, UBS thinks there "remains a possibility of a large player such as Cameco (or others) taking a look" at Paladin.
UBS said Paladin trades for $US19/lb of resource versus recent transactions at around $US30/lb such as the SXR (Uranium One) acquisition of UrAsia.