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Monday, February 28, 2011

RPT-Equinox's $5 bln Lundin offer may spur bidding war, (EQN), (TSE: LUN), (TSE: IMN)

Equinox Minerals (EQN.AX) has offered to buy Lundin Mining (LUN.TO) for C$4.8 billion ($5 billion) to expand production in Africa while copper hovers near record highs, a move that may trigger a bidding war with Canadian rival Inmet (IMN.TO). Equinox, which owns one of Africa's largest copper mines, said on Monday its C$8.10-a-share cash and stock bid is far superior to Inmet's rival offer, which would pay no premium to Lundin shareholders. Equinox's bid, which comes at a time when China is driving global demand for copper and pushing prices to record highs, is 26 percent above Lundin's closing share price on Friday.

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