This is good news...CBH Resources in Nyrstar's sights as...

This is good news...

CBH Resources in Nyrstar's sights as takeover target
Sarah-Jane Tasker From: The Australian January 09, 2010 12:00AM

CBH Resources is tipped to be the takeover target of Belgium-listed Nyrstar, in a move that could mark a return to the company's past as part of the failed Pasminco.

The zinc miner went into a trading halt yesterday, a day after it was given a speeding ticket by the Australian Securities Exchange following a 31 per cent hike in its share price on Monday on speculation a deal was pending. Its shares rose a further 26 per cent on Thursday.

Sydney-based CBH said in its response to the ASX it was in talks with "a number of separate parties" with respect to transactions which are focused on generating shareholder value.

"All these discussions are incomplete and are insufficiently definite to warrant disclosure," the company said in its response to the ASX.

Market speculation has centred on Nyrstar making a play but there was also suggestions its rival Perilya could potentially be inking a deal with its NSW neighbour.

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Analysts had speculated it was likely the miner had done a deal with its neighbour Perilya, to recognise the synergies from their respective tenements at Broken Hill.

But a Perilya spokesman said the company was not in any discussions on a merger, takeover or any other corporate transaction with CBH.

Nyrstar buying CBH would be a return to the old Pasminco. Nyrstar was created in August, 2007 by combining the zinc smelting and alloying operations of Zinifex -- which was born out of the failed Pasminco -- and Umicore, a Belgian materials technology company.

It is understood any bid, which will need the support of CBH's major shareholder, Japan's Toho Zinc -- which holds a 23 per cent stake -- is not close to being finalised.

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