Breaking News

Take no action on Jaguar plan, HudBay tells shareholders

Reuters

15:03 EST Wednesday, November 26, 2008

OTTAWA — — HudBay Minerals Inc. recommended on Wednesday that shareholders take no action on a proposal by Jaguar Financial Corp. to bid for the Canadian base metals miner until there is a formal offer to evaluate.

Unhappy with HudBay's deal to buy Lundin Mining Corp., Jaguar said on Nov. 21 it planned to make an offer for HudBay that would see the company broken up and sold.

HudBay said it will review a request by Jaguar, which is a HudBay shareholder, to call a shareholders meeting to remove and replace the miner's board of directors.

HudBay said it remains committed to its plan to buy Lundin for about $566-million in stock, a deal that drove down its share price last week as investors worried about Lundin's large, but riskier, holdings.