Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Equinox Minerals Limited advised in a statement on Tuesday that it has commenced with its offer to acquire Lundin Mining Corporation.
The company said that the offer will remain open until April 14, 2011 unless withdrawn or extended.
Under the terms of the offer a shareholder can receive Can$8.10 per Lundin share or 1.2903 Equinox shares plus $0.01, subject to conditions.
“I believe we have put an attractive offer to shareholders of Lundin and that this transaction will create value for shareholders of both Equinox and Lundin. The clearly superior premium we are offering over the nil-premium merger with Inmet represents an offer that should provide a platform for the successful combination of our two businesses,” said Equinox’s President and Chief Executive Officer Craig Williams.
Equinox launched its hostile bid in late February. The unsolicited takeover attempt could thwart the proposed merger between Lundin and Inmet Mining Corp. made public in January. The CDN$9 billion deal would create a new mining company, Symterra Corp.
Michael Allan McCrae wrote this story. You can contact him at [email protected] or @michaelmccrae.
