Several U.K. newspapers speculated last week that First Quantum Minerals Ltd. (TSX: T.FM, Stock Forum) may be a takeover target.
The speculation surrounding First Quantum was duly noted by Canaccord Wealth Management in its Morning Coffee newsletter on Monday.
"There is talk that Rio Tinto PLC’s (NYSE: RIO, Stock Forum), Glencore International Plc, and possibly a Chinese company may be looking at FM," the paper wrote.
The articles mention that the company’s board could be called upon to defend a bid approaching north of $30 a share versus last Thursday’s close of $18.38.
A Bay Street analyst notes that the merger could make strategic sense to these parties as FM's largest assets (Kansanshi and Sentinel) are located in Zambia, which is near Glencore's Mufulira copper smelter and also Rio Tinto’s Palabora smelter, and producers are always looking to secure more offtake to feed their smelters, especially given the tightness in the copper market expected longer term.
Down 2% to $19.31 on Monday, First Quantum has a market cap of $9.2 billion, based on 476.3 million shares outstanding. The 52-week range is $29.13 and $12.60.
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Stock Market News, newspapers, speculated, Palabora, copper market, shares outstanding, market cap, company’s board, Rio Tinto, Glencore