good news possibly for anvil holders

http://www.theaustralian.com.au/business/city-beat/bid-for-equinox-minerals-sparks-rally-in-copper-miners/story-fn4xq4cj-1226033255255





Bid for Equinox Minerals sparks rally in copper miners
Michael Bennet From: The Australian April 04, 2011 11:53AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these? BANKERS are scrambling to potentially get aboard Minmetals Resources' $6.3 billion bid for Equinox Minerals, which has sent Equinox and fellow copper miners' stock prices soaring.

Deutsche Bank and Macquarie snared roles advising China's Minmetals, while Equinox, which is amidst a hostile $C4.8bn ($4.8bn) offer for Canadian base metals miner Lundin Mining, is yet to appoint defence advisers.

The Zambia-focused copper miner is being advised by Goldman Sachs and TD Securities on its offer for Lundin, but it is not yet clear if they will play a role in the Minmetals deal or Equinox will bring in additional help.

On Minmetals' legal side are Davies Ward Phillips & Vineberg, Freehills and Linklaters. Australian winners on the public relations side are FD Thirdperson for Equinox and Kreab Gavin Anderson for Minmetals.

Equinox said today its board would be meeting to consider the "unsolicited proposal" and comment further following consideration of the $C7 cash offer - a 23 per cent premium its closing price on the TSX on April 1.

Rothschild advised Equinox on its recent $1.25bn takeover of Citadel Resources, but then got the job helping Inmet Mining, which last week ended plans for a merger with Lundin.

Lundin last week continued to reject Equinox's offer as too low.

With Barclays Capital leading Thomson Reuters' investment banking league table from $US38.8bn of announced deals involving Australian companies in the first quarter, getting on big transactions like Equinox's is key to catching up.

Analysts expected Equinox was a takeover target and today said the bid would put focus on potential deals for other African copper miners Tiger Resources and Anvil Mining.

"The significance of the bid highlights not only China?s appetite for copper, but its growing presence in Africa," said analysts from Foster Stockbroking.

"We believe it will put further focus on Australian copper producers with operations in Africa.

"The key stocks in this space are Tiger Resources, which will commence production this month, and Anvil Mining."

In early trade, Tiger jumped 7.4 per cent to 58 cents, while Anvil rose 1.73 per cent to $6.46, in a positive broader market. PanAust also rose 6.5 per cent to 82.5c.
Equinox's local shares jumped 27.8 per cent to $7.30.

Minmetals, which expects the deal to be completed by mid year, plans to fund the deal through a combination of existing cash, long term credit facilities from Chinese banks and equity including financial investments in the company by Chinese institutions