Should Augusta Resource Corporation Welcome the HudBay Takeover Bid?

Benjamin Cox |


Benjamin discusses HudBay Minerals Inc.'s (HBM) unsolicited takeover bid of Augusta Resource Corporation (AZC) and their Rosemont Copper project. Hudbay should know everything about this project before they make the deal, but their purchase of Skye Resources in 2008 puts this into question. That being said, the project is more likely to work with a partner like HudBay, and HudBay's interest makes sense due to the fact that there is not much else out there to develop. Benjamin discusses other possible bidders, including First Quantum Minerals Ltd. (FQVLF) , Teck Resources Limited (TCK) , Antofagasta plc ($ANFGY), Freeport-McMoran Copper & Gold (FCX) and others, along with those who won't bid, such as BHP Billiton (BHP) , Rio Tinto Group (RIO) , Vale (VALE) , and any capstone size companies. Benjamin concludes with how Augusta's management should welcome this offer and accept it as a friendly takeover, instead of trying to squeeze an extra 20% that is likely not there.

 

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Companies

Symbol Name Price Change % Volume
TCK Teck Resources Ltd n/a n/a n/a 0
RIO Rio Tinto Plc 41.14 -0.19 -0.46 906,187 Trade
VALE VALE S.A. American Depositary Shares Each Represen 9.26 -0.06 -0.64 12,767,703 Trade
HBM Hudbay Minerals Inc (Canada) 6.90 -0.10 -1.43 138,350 Trade
BHP BHP Billiton Limited 36.59 -0.23 -0.62 1,062,413 Trade
FCX Freeport-McMoRan Inc. 12.91 0.08 0.62 3,167,319 Trade
LDSYF Lifestyle Delivery Sys 0.43 0.02 4.68 2,162

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