SYDNEY, (Reuters) - Australia's Oxiana Resources Ltd. (ASX: OXR.ax) on Thursday stopped short of confirming a media report it was considering a takeover of zinc producer Zinifex Ltd. (ASX: ZFX.ax) , which has a market value of around $8 billion, saying it was only one of a number of possibilities.
The report in the Australian Financial Review helped drive Oxiana shares up as much as 5 percent and Zinifex more than 4 percent higher.
Oxiana Managing Director Owen Hegarty said in an interview with the paper that a takeover of Zinifex would produce cost savings through synergies, especially after Zinifex spins off its smelting assets in September.
"Like us they've got some good quality assets," the paper quoted him as saying. "We've probably got a good, strong growth pipeline and so do they, and there's probably some synergies there."
An Oxiana spokeswoman told Reuters that the comments "needed to be taken into context" and that while Oxiana was always on the lookout for growth opportunities, there were no imminent plans to make acquisitions.
"We're always looking at M&A opportunities and Zinifex is just one of a number of companies we will have a look at," the spokeswoman said.
Zinifex, one of the world's top zinc producers has been mentioned as a likely corporate predator or prey since moving to spin off its smelting business in favour of mining.
In September, the smelting assets will help form Nyrstar, which brings together those assets and ones owned by Belgium's Umicore NV/SA ACUMt.BR.
Oxiana shares climbed as high as A$3.93 in early trading. At 0350 GMT, the stock was up 4.3 percent at A$3.90.
Zinifex hit a high of A$20 and was last fetching A$19.99, up 4.4 percent.
Hegarty recently told Reuters he held no doubt that the mergers dramatically altering ownership of big mining houses worldwide would continue, but wasn't sure whether his company would remain predator or fall prey.
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