Lundin (LUN), Equinox (EQN) Battling Over Value

The board of Lundin Mining (TSE:LUN) has recommended its shareholders reject Equinox Minerals (TSE:EQN) hostile C$4.8 billion offer for the company, citing a low valuation on the company's assets.

Lukas Lundin, chairman of Lundin Mining, said, "The offer has such extensive conditions that even if the amount of the offer was not so financially inadequate, the board would not recommend that shareholders accept the offer because we have no confidence that it would ever close."

"Equinox is essentially asking shareholders to grant them an option to acquire Lundin Mining at their discretion, and their lenders discretion, at a price that is inadequate and contains substantial risks if implemented," said Lundin CEO Phil Wright.

The board said Equinox's offer is inadequate because it undervalues the assets owned by Lundin. The directors also claimed "risk factors inherent in the Equinox operations will affect the ability of the common shares of Equinox to continue to trade at their current levels and multiple to net asset value for any sustained period."

Equinox was trading at $5.38 in Toronto, up $0.14, or 2.67 percent. Lundin was at $7.27, falling $0.07, or 0.95 percent.




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