Hostile Equinox bid threatens $9bn Lundin-Inmet merger Caroline Van Hasselt From: Dow Jones Newswires February 28, 2011 10:16AM Increase Text SizeDecrease Text SizePrintEmail Share
Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?CANADIAN copper miner Equinox Minerals plans to make a hostile bid today for rival Lundin Mining, which could scuttle Lundin's C$9 billion ($9.04bn) merger with Inmet Mining to forge an international copper-mining giant.
Lundin yesterday said that it's been advised by Equinox that the miner will unveil its unsolicited offer for Lundin shares before the markets open today. Lundin said it is not aware of the terms and will not comment on the proposal until it's completed its review.
Equinox is dual-listed on the Toronto and Australian stock exchanges.
Takeover activity in Canada's mining industry has intensified in the last year, given the rising demand for natural resources from Asia, in particular China, the world's largest consumer of copper and other base metals.
In January, Lundin and Inmet announced their plan to merge and create copper producer Symterra Corp in a transaction valued at about C$9bn. Under the terms of their deal, each Inmet shareholder is to receive 3.4918 shares of Symterra, and each Lundin shareholder will receive 0.3333 shares of Symterra for each share held.
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Related CoverageRio has eyes on Equinox Minerals Herald Sun, 15 Feb 2011
Equinox good fit for Rio Tinto Perth Now, 15 Feb 2011
Copper roars back The Australian, 15 Feb 2011
OZ shares fall, despite capital program Perth Now, 10 Feb 2011
Dream run for copper stock Courier Mail, 6 Feb 2011
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Equinox, Lundin and Inmet are based in Toronto.
Lundin Mining is a base metals mining company with operations in Portugal, Spain and Sweden, which together produce copper, nickel, lead and zinc. It also holds a development project pipeline that includes an expansion project at its Neves-Corvo mine, along with its equity stake in the Tenke Fungurume copper-cobalt project in the Democratic Republic of Congo.
http://www.theaustralian.com.au/business/mining-energy/hostile-equinox-bid-threatens-9bn-lundin-inmet-merger/story-e6frg9dx-1226013333133
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