Globe says new HudBay CEO plans to shake things up

2008-03-05 06:20 ET - In the News

The Globe and Mail reports in its Wednesday, March 5, edition the new head of HudBay Minerals promises big change that will likely include mergers and acquisitions. The Globe's Andy Hoffman writes that Allen Palmiere says under his leadership, HudBay will spend more time evaluating "external" opportunities. Mr. Palmiere says HudBay will not be content to just "sit back" and focus on its " FLAGSHIP" operations in Flin Flon, Man. "What HudBay needs is to become more proactive and somewhat more aggressive.

That is as much a cultural change as a strategic one," says Mr. Palmiere. Despite its bulging cash balance, HudBay has sat on the sidelines amid unprecedented levels of merger and acquisition activity in the base metals industry.

With Mr. Palmiere at the helm, that could soon change. He believes half of the world's mid-tier mining companies will "disappear" to takeovers over the next 18 months. "If the right opportunity presents itself, we certainly have the resources and we have the people. If it's the right acquisition we can pull the trigger," says the 55-year-old industry veteran. Mr. Palmiere's predecessor, Peter Jones talked the acquisition talk, but could never cut a deal.