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Tuesday, April 12, 2011

Lundin says Equinox takeover offer "hypocritical", (TSE: LUN), (TSE: EQN)

Lundin Mining (LUN.TO) said on Tuesday it continues to explore strategic alternatives, and repeated that shareholders should reject the unsolicited C$4.7 billion bid from rival Equinox Minerals (EQN.TO). The Toronto-based base metal miner also noted Equinox's own rejection of Minmetals Resources (1208.HK) unsolicited C$6.3 billion bid as an "opportunistic" bid at only a fraction of the premium paid for other mining company acquisitions. "This response by Equinox seems very hypocritical seeing that they are urging Lundin Mining shareholders to accept an offer that is significantly worse than what has been offered to Equinox's shareholders by MMR," Lundin Chief Executive Phil Wright said in a statement. "MMR is offering a much better economic proposition than Equinox is offering Lundin Mining shareholders and without the significant risks involved in the Equinox bid, which include a huge debt burden, an overhang from significant equity issuance and (the) prospect of further dilution," he added.