TORONTO — Bowing to pressure from certain shareholders regarding its proposed business combination with Lundin Mining, HudBay Minerals has called a special meeting for March 31, 2009. The meeting was requisitioned by Jaguar Financial for the purpose of removing the current board, but as of Dec. 30, 2008, Jaguar had not proposed an alternative slate of directors.
HudBay and Lundin originally proposed a friendly business combination late in November. HudBay said the deal would give it a strong cash position, increased operating scale and a strengthened resource base. HudBay offered to exchange each Lundin share for 0.3919 of a HudBay share, plus a loan and private placement to relieve Lundin's liquidity problems.
Many analysts questioned the deal, but the most vociferous objections come from Jaguar, which initially offered to kill the merger by making a short-lived and unsuccessful bid for HudBay. Now it appears that Jaguar has what it wants, namely a shareholder vote on who will run HudBay and what direction the company will take.
Follow the continuing saga at either www.HudBayMinerals.com or www.JaguarFinancial.ca.
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