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.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BHP BHP Billiton Limited 34.59 -0.67 -1.89 1,077,326
FCX Freeport-McMoRan Inc. 10.59 0.01 0.05 5,389,074
HBM Hudbay Minerals Inc (Canada) 3.85 0.00 0.00 59,828
LDSYF Lifestyle Delivery Sys 0.69 0.00 0.07 2,120
RIO Rio Tinto Plc 34.24 0.03 0.09 871,464
TCK Teck Resources Ltd 20.60 -0.42 -2.00 4,754,265
VALE VALE S.A. American Depositary Shares Each Represen 6.91 0.00 0.00 14,818,067


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