Nevsun shares up after rejecting $1.5-billion unsolicited takeover offer

VANCOUVER – Shares in Nevsun Resources Ltd. gained more than 15 per cent in late-morning trading after it rejected an unsolicited $1.5-billion takeover offer by Euro Sun Mining Inc. that included Lundin Mining Corp.

Nevsun said the offer failed to reflect the strategic value of its asset base and presented a problematic structure that could further undermine value to its shareholders.

Shares in the company were up 61 cents at $4.43 in trading on the Toronto Stock Exchange.

Euro Sun and Lundin had offered $1.5 billion in cash and stock for the company in a deal that would see Lundin acquire Nevsun’s European assets including the Timok project and leave Euro Sun with Nevsun’s Bisha mine in Eritrea.

Under the proposal, Nevsun shareholders would receive $2 in cash and $3 in shares of Euro Sun and Lundin for each Nevsun share.

Nevsun said Lundin had earlier approached it to discuss a potential deal, but that it rejected a proposal to acquire only Timok and other exploration assets in Europe.

Companies in this story: (TSX:NSU, TSX:LUN, TSX:ESM)