Note 2nd last sentence...CSE would definitely be on the...

Note 2nd last sentence...CSE would definitely be on the radar.

Zinifex may drop its bid

ZINIFEX Australia has hinted that it may drop its hostile takeover bid for Allegiance Mining if it transpires that the target's leveraged speculative share trading losses are worse than it has so far revealed.

Zinifex, which closes its $745 million hostile bid for the nickel miner on February 22, wants to know if such trading has ceased and if all losses - including those that may be realised in future - have been disclosed to the ASX.

The trading was alleged in media reports and appears to be confirmed in Allegiance's December quarter report, which revealed that the company had lost $7.88 million through the trades in the 2007 calendar year.

Zinifex chief executive Andrew Michelmore said that the miner wanted to know if there were additional losses, real or potential, beyond those already reported to the ASX.

"In the event that Allegiance is facing additional potential losses in the current volatile market or fails to provide adequate disclosure, Zinifex reserves the right to allow its offer for Allegiance shares to lapse," Mr Michelmore said.

"Allegiance is not the only game in town. We have other opportunities we are assessing."

Zinifex says the share trading should have been disclosed in Allegiance's target's statement.