OZ Minerals shake off Glencore takeover rumours

Oz Minerals is rejecting reports GlencoreXstrata is making a takeover play for the Australian copper and gold miner.

Oz Minerals is rejecting reports Glencore is making a takeover play for the Australian copper and gold miner.

"The company advises it has not received a substantial shareholder notice from Glencore nor has OZ Minerals been approached by Glencore in regard to any proposal," Oz Minerals said in an ASX statement.

British newspaper, The Mail on Sunday reported Glencore had acquired up to a 10 per cent Oz Minerals stake, claiming the resources giant was considering a £750-million bid for the mid-tier miner.

The report cited City sources and claimed Oz Minerals had appointed UBS as a defence adviser.

Australian law stipulates an investor holding a minimum of 5 per cent stock is obliged to disclose its ownership.

Owner of the Prominent Hill copper mine in South Australia, Oz Minerals suffered a $268 million net loss for the first half of 2013.

In July the miner warned it was anticipating a first half profit hit in the range of $200 million to $240 million after tax and axed 61 jobs at Prominent Hill in a bid to cut discretionary spending.

At the time the miner said the impairment is the result of falling copper and gold prices, but recognised the Aussie dollar’s dip below parity with the US provided some relief.

Glencore’s bearish commodity outlook makes the takeover rumour somewhat unlikely.

Glencore boss Ian Glasenberg recently said the company would no longer be investing in new projects when returns are not assured; explaining projects need to be economically sound to go ahead.

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