Proxy adviser Glass Lewis has recommended that its clients vote to maintain Augusta Resource Corp's shareholder rights plan, which is meant to thwart a hostile takeover bid from larger Canadian base metals miner HudBay Minerals Inc. Investors will vote on whether to cancel the plan at Augusta's May 2 shareholder meeting. Without the plan, HudBay's hostile bid, which expires May 5, would be more likely to succeed.Shareholder rights plans, often called poison pills, are designed to make hostile takeovers difficult.In its report, which was viewed by Reuters, Glass Lewis said it believes that rights plans are generally "not conducive to good corporate governance," but that it supports limited plans in some circumstances.Poison pills can give directors more time to seek out friendly bidders, boosting payouts to investors.
Augusta Resource Corporation (Augusta) is engaged in the acquisition, exploration and development of natural mineral resource properties. Shares of AZC fell by 0.3% or $-0.01/share to $3.28. In the past year, the shares have traded as low as $0.48 and as high as $3.64. On average, 611430 shares of AZC.TO exchange hands on a given day and today's volume is recorded at 750.
HudBay Minerals Inc. (HudBay) is an integrated mining company. Shares of HBM traded higher by 1.0% or $0.08/share to $8.09. In the past year, the shares have traded as low as $5.78 and as high as $9.14. On average, 41355 shares of HBM exchange hands on a given day and today's volume is recorded at 2300.
HudBay Minerals Inc. (HudBay) is an integrated mining company. Shares of HBM traded higher by 1.25% or $0.11/share to $8.92. In the past year, the shares have traded as low as $6.02 and as high as $10.03. On average, 625705 shares of HBM.TO exchange hands on a given day and today's volume is recorded at 52898.
Source
