jp morgans reviews ozl tp, page-9

CANBERRA (Dow Jones)--OZ Minerals Ltd. (OZL.AU) Chief Executive Andrew Michelmore Wednesday said the company has received alternative proposals to a A$1.2 billion bid by
China Minmetals Nonferrous Metals Co., but that the offer by the commodity trader remains superior.
"We've had various proposals come forward, but unlike the Minmetals deal, they don't provide a total solution for our financial position," Michelmore told Dow Jones Newswires on the sidelines of the Minerals Week conference in Canberra.
"The Minmetals bid is in the best interests of our shareholders. If we do receive a superior bid, it's the board's duty to consider it, but we haven't received one," he said. Shareholders are due to vote on the deal on June 11.
Minmetals is set to pay US$1.21 billion for most of OZ's mining assets apart from its Prominent Hill mine in South Australia state.
OZ plans to use the funds to pay down some of the A$1.1 billion in debt due for refinancing June 30 and says it will still have a cash balance of about A$600 million
once the transaction is completed.
If the transaction goes ahead, Michelmore will become CEO of Minmetals' Australian operations.
"Minmetals looks to grow the business organically. We will also look at other ways to grow the business, but they have to add value. For now, what we're focused on is
to get the deal done," he told reporters.
Michelmore denied that BHP Billiton Ltd. (BHP) - long rumored as a potential buyer for the Prominent Hill mine - has visited the operation. "Our data room has been closed since the Minmetals bid was announced," he said.
Asked what kind of a recovery for commodities demand he expected, Michelmore said much of the current rally in base metals, particularly copper, was down to restocking among
key consumers such as China.
"There are positive signs that demand is picking up, such as improved car sales that indicate the economy in China and elsewhere is picking up. But we are cautious about
the demand recovery and when the restocking cycle is going to end. Demand is picking up but slowly," he said.