ISS alters recommendation on Lundin-Inmet tie-up

TORONTO, March 28 (Reuters) – Independent advisory firm ISS
has urged shareholders of Lundin Mining (LUN.TO: Quote, Profile, Research) shareholders
to vote against the company’s proposed acquisition by Canadian
rival Inmet Mining (IMN.TO: Quote, Profile, Research).

ISS had initially recommended that Lundin shareholders back
the proposed deal, which would lead to the creation of a new
base metal miner called Symterra. [ID:nN27203451]

However, the proxy advisory firm has now altered its stand,
arguing that Lundin’s shares have traded at a premium to the
Inmet offer since rival Equinox Minerals (EQN.TO: Quote, Profile, Research) came in with
a competing C$4.7 billion ($4.8 billion) bid for Lundin late
last month.

Since Feb. 28, Lundin’s shares have traded at a slight
discount to the Equinox offer, but at an average premium of
16.6 percent to the implied Inmet offer price, suggesting that
the market believes Equinox is more likely to be successful,
ISS said in a note issued on Friday.

The firm also noted that there was some uncertainty around
Inmet’s $4.3 billion Cobre Panama copper-gold project in
Panama. The government in Panama, which recently announced
plans to repeal certain mining laws, has now indicated it may
not approve a coal-fired power plan to for the project, ISS
said. [ID:nN04207350]

Earlier on Monday, ISS advised Equinox shareholders to back
its board’s proposed share issue plan in connection with the
company’s bid for Lundin. [ID:nL3E7ER09S]
(Reporting by Euan Rocha; editing by Rob Wilson)

ISS alters recommendation on Lundin-Inmet tie-up