Lundin Mining Jumps After HudBay Still Intends to Bid (Update1)

By Jakob Lindstroem

Nov. 27 (Bloomberg) -- Lundin Mining Corp. rose the most in four weeks in Stockholm trading after Canada’s HudBay Minerals Inc. said it still intends to pursue a takeover.

“HudBay remains committed to completing its proposed business combination with Lundin,” Winnipeg, Manitoba-based HudBay said yesterday in a statement. HudBay said its shareholders shouldn’t take any action over a proposed offer from Jaguar Financial Corp. until a formal bid has been made.

Lundin Mining increased as much as 1.65 kronor, or 26 percent, to 7.95 kronor and was at 7.65 kronor by 1.07 p.m. on the Stockholm bourse, valuing the company at 3 billion kronor ($380 million). That is the biggest intraday percentage gain for the shares since Oct. 29.

HudBay agreed to acquire Toronto-based Lundin to gain operations in Europe and Africa, and the agreement includes a C$135.8 million ($110.5 million) cash injection into Lundin to strengthen its balance sheet amid a collapse in commodity prices. Jaguar’s bid for HudBay is an attempt to block the Lundin deal, which Jaguar says will be a value-destroying transaction.