reuters pdn

Reuters -The worlds No 1 uranium supplier, may be preparing a takeover bid for australian uranium miner Paladin Resources Ltd to boost its sources of supply, the AFR said on tuesday. Citing no sources, the paper said it understood at least one fund manger had been approached by parties representing Canada based Cameco. It said Paladin was aware of the takeover speculation but had declined to comment.
The speculation comes as Cameco's overhaul of its flooded Cigar Lake uranium mine in Canada is set to take months longer than it previously expected, potentially delaying production to 2011.
The mine, which sits on one of the world's richest uranium deposits, flooded lay year, putting additional pressure on global uranium supply as demand has soared.
The paper said a drop in Paladin's share price has made it a possible takeover target.
On Kitco site today.