TORONTO — Nevsun Resources Ltd. says it has rejected a $1.4-billion hostile takeover bid from Lundin Mining Corp. as too low.
The Vancouver based company says its board of directors is recommending shareholders reject the bid because it undervalues the company, is lower than previous proposals from Lundin, and is lower than other expected offers.
Nevsun says it has launched a strategic review to look at alternatives including a sale of the entire company.
The mining company, with an active mine in Eritrea and a major copper development project in Serbia, says it is in discussions with several parties that have expressed an interest in Nevsun, and expects better offers or other alternatives will emerge.
In late July, Toronto-based Lundin offered $4.75 in cash per share after Nevsun rejected a previous cash and share bid valued at $5 per share that Lundin made in partnership with Euro Sun Mining Inc.
Nevsun’s share price was trading up 11 cents or 2.23 per cent at $5.04 in mid-morning trading on the Toronto Stock Exchange.
Companies in this story: (TSX:NSU, TSX:LUN, TSX:ESM)
The Canadian Press