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.
The bid for a hostile takeover of Lundin Mining by Equinox Minerals was given a boost today by proxy voting firm International Shareholder Services (ISS), The Financial Post reported:
Proxy voting firm Institutional Shareholder Services (ISS) is recommending that Equinox Minerals Ltd.’s shareholders vote in favour of the company’s $4.8-billion hostile takeover bid for Lundin Mining Corp.
The endorsement is a big boost for Equinox, which was rejected by Lundin’s board and is trying to build investor support for the deal.
ISS noted that shareholder approval of the Equinox bid “is warranted” based on strategic rationale, “apparently” manageable risks, and lack of corporate governance concerns.
The bid is competing with a so-called “merger of equals” between Lundin and Inmet Mining Corp., whose signature project is the massive Cobre Panama copper mine under development. That deal is scheduled to be voted on by shareholders April 4.
