Lundin Mining launches $1.4-billion hostile takeover bid for Nevsun Resources

TORONTO – Lundin Mining Corp. is carrying through on its vow to take a $1.4-billion cash takeover offer directly to the shareholders of Nevsun Resources Ltd. after the target company rejected previous proposals.

The Toronto-based miner says it has formally requested the Nevsun securityholder list and will directly offer $4.75 in cash for each share.

Nevsun, in response, advises shareholders to do nothing until it makes a formal recommendation, noting the offer is open until Nov. 9 and repeating its contention that it ignores “the fundamental value of Nevsun.”

Lundin announced it intended to make the hostile takeover offer for its Vancouver-based rival on July 16.

Since then, Nevsun’s stock price has jumped nearly 15 per cent, from $4.21 to $4.83.

Lundin says the offer represents a premium of 82 per cent to the closing price of $2.61 on Feb. 6, the date of its first proposal to Nevsun, and 33 per cent to the closing price of $3.58 on April 30, when it made a public offer.

Companies in this article include: (TSX:NSU, TSX:LUN)