CORRECTED – ISS advises Equinox investors back share issue plan

(Corrects headline and text to indicate that ISS has advised
Equinox shareholders, not Lundin shareholders, to back share
issue in relation to Lundin takeover deal)

MELBOURNE, March 28 (Reuters) – Equinox Minerals (EQN.TO: Quote, Profile, Research)
said on Monday an independent third-party has recommended that
its shareholders back its board’s proposed share issue plan in
connection with the company’s C$4.7 billion ($4.8 billion) bid
for Lundin Mining (LUN.TO: Quote, Profile, Research).

Proxy voting firm Institutional Shareholder Services
recommended that its clients should vote for the share issuance
based on “reasonable strategic rationale, apparently manageable
risks and absence of governance concerns.”

Equinox shareholders are expected to vote on the plan at a
special meeting on April 11.

Lundin rejected the offer from its rival copper miner last
week as inadequate and too risky, but did not say the deal was
inferior to its planned tie-up with Inmet Mining (IMN.TO: Quote, Profile, Research), a
merger with no premium which shareholders are due to vote on
April 4.

Equinox has offered a mix of C$8.10 in cash and 1.29
Equinox shares plus C$0.01. At Friday’s close the offer was
worth C$7.57 a share, slightly below Lundin’s last trade at
C$7.63, indicating shareholders expect the deal to go through.
($1 = 0.976 Canadian Dollars)
(Reporting by Sonali Paul; Editing by Ed Davies)

CORRECTED – ISS advises Equinox investors back share issue plan