takeover target, page-7

0822 [Dow Jones] Speculation over possible targets for the newly created OZ Minerals is likely to gather pace following report it may secure an extra A$3 billion in debt for acquisitions. The company, created out of the merger of Zinifex (ZFX.AU) and Oxiana (OXR.AU), already has a war chest of A$1.2 billion left over from the sale of Zinifex's smelting assets last year. OZ CEO Andrew Michelmore tells the Australian Financial Review the company would be comfortable taking on another A$3 billion in debt. "We'd have to take it through to the board, but for the sort of company we are, and the range of commodities we've got, 25% to 35% debt to debt plus equity is a sensible range," Michelmore says. Further comment wasn't immediately available. (SVM)