KZL's share price has been holding up very well in the face of...

KZL's share price has been holding up very well in the face of the profit downgrade.

OXR has said it is looking to expand via takeovers, and KZL is an obvious candidate.

OXR would have to offer a deal to the Korean company which has a blocking stake, perhaps just agree to sell some of KZL's output to them.

Goldman Sachs JBWere have an upside valuation of $10.45 for KZL. This does not include a takeover premium.

The problem for OXR would be how to fund a takeover as the cost is likely to be over $2 billion. I assume they would have to offer a mixture of cash and OXR shares.