Speculation Glencore sizing up OZ Minerals – TRADING BUYS: OZL, SFR, TGS
•AFR this morning is speculating Glencore Xstrata is considering a takeover bid for OZ Minerals (OZL) after building a stake on-market as much as 10%. While Glencore is not a disclosed substantial shareholder, its advisor may have accumulated a stake through equity swaps.
•Also supporting the article is a UK weekend report Glencore is weighing up a 750m pound offer for Oz quoting one Australian banker said “OZ Minerals had recently retained UBS to advise it on a ‘defence’ of the company, which has seen its shares plunge 34 per cent this year.”
•Article also highlights China’s growth has stabilised at 7.5 per cent a year and that demand for base metal prices, such as copper and iron, will soon rise.
•If the speculation is correct then perhaps we are at the bottom of the cycle with Glencore seeking opportunistic M&A deals before the next re-rating of our large resource stocks.
•Watch for the copper producers to be TRADING BUYS today including: OZL, SFR and TGS.
