Canada-based uranium giant Cameco could be eyeing a takeover of Australian uranium miner Paladin Energy, according to analysts.
In an investor briefing this morning Foster Stockbroking said Cameco's early moves to raise as much as $1 billion "could signal it is on the acquisition path to pick up undervalued uranium assets".
Analysts said Cameco was not in need of extra money to fund its current projects, which strengthened indications it was looking to buy other developments.
"Should Cameco be on the acquisition path we believe Paladin will be firmly on its radar," Foster Stockbroking analysts said.
"[Paladin's] growth profile remains one of the most attractive in the uranium industry …"
"In addition the recent pull back in the share price and valuation provides an opportune time for any potential acquires to make a bid."
The speculation is the latest action in Australia's uranium sector, and follows the WA Government's approval of Toro Energy's Wiluna development.