Globe says rumour suggests HudBay now open to offers

2008-04-25 05:55 ET - In the News

The Globe and Mail reports in its Friday, April 25, edition that rumour says HudBay Minerals is ready to consider offers. The Globe's Andy Hoffman writes that unnamed sources say under former chief executive officer Peter Jones, HudBay was often reluctant to engage in discussions with possible buyers. Unnamed sources say the company is more open to discussions. One source says while nothing is imminent, new CEO Allen Palmiere has indicated he will at least entertain enquiries from possible suitors. HudBay is also actively seeking potential acquisitions itself. Strong metals prices have furnished HudBay with a bulging balance sheet. The company had just over $757-million in cash at the end of 2007, an attractive asset for buyers or a hefty war chest for the company to finance its own deals. Desjardins Securities analyst John Hughes rates HudBay a "top pick." Thursday, he increased his share target price to $27.70 from $25.20 to reflect higher estimates for copper prices, which have helped offset softening zinc prices. "The management team of HudBay is more active in trying to either buy something of size such as a development project or even selling the company," said Mr. Hughes.