AUST COPPER MINER EQUINOX BEGINS HOSTILE BID FOR LUNDIN MINING

Australian copper miner Equinox Minerals (ASX:EQN) has formally begun its hostile takeover bid of Canada's Lundin Mining Corporation for $C4.8 billion (US$4.9 billion) in cash and shares.

The Canadian and Australian-listed company's bid for the base metals producer rivals Lundin's merger plan with fellow Canadian miner Inmet Mining Corporation.

Lundin shareholders have until April 14 to respond to the bid terms released on Tuesday, including a combination of cash and Equinox shares for a total consideration value of $C8.10 per Lundin share.

The offer reflects a 26 per cent premium to Lundin's closing price on the Toronto Stock Exchange on Friday of $C6.45 per share.

"The clearly superior premium we are offering over the nil-premium merger with Inmet represents an offer that should provide a platform for the successful combination of our two businesses," Equinox president and chief executive Craig Williams said in a statement.

The hostile bid comes less than two months after Equinox completed its $A1.2 billion takeover of Saudi Arabia-focused Australian copper play Citadel Resource Group Ltd.

The company's key asset is the north Zambian based Lumwana mine.

Perth-based Equinox Minerals, which has a market capitalisation of $5.08 billion, was added to the S&P/ASX 100 index this week.

Its shares had dropped 21 cents, or 3.62 per cent, to $5.59 by 1249 AEDT.

(AAP) ry

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