australias zinifex would be participant in m and a
Australia's Zinifex: Would Be Participant In M&A -2-
Thursday August 24th, 2006 / 8h20
However, he said while Zinifex continues to look at a range of opportunities, the Melbourne-based company will only move if a deal clearly adds to value for shareholders.
Asked if Zinifex had held any discussions with Xstrata PLC (XTA.LN) over the zinc assets held by its takeover target Falconbridge Ltd. (FL), Gailey said only that a previous review of the assets found they weren't of interest.
He said Zinifex hasn't held any discussions with major mining companies that advanced to a stage that warranted disclosure.
Gailey offered a positive outlook for zinc prices in 2007 and beyond as producers struggle, or are reluctant, to significantly expand output to meet China-led global demand for the galvanizing metal.
He conceded part of miners' reluctance to expand was derived from concerns over swamping the market and diluting prices, as happened in the late 1990s and early this decade.
-By James Attwood, Dow Jones Newswires; 612-8235-2957; [email protected] -Edited by Graham Morgan
ZFX
zinifex limited
