UPDATE 1-Equinox touts offer to Lundin shareholders

TORONTO, March 30 (Reuters) – Australia’s Equinox Minerals
(EQN.TO: Quote, Profile, Research) said on Wednesday its unsolicited C$4.5 billion ($4.6
billion) offer for Lundin Mining (LUN.TO: Quote, Profile, Research) was the most
attractive option for Lundin’s shareholders.

Canadian base metal miners Lundin and Inmet Mining (IMN.TO: Quote, Profile, Research)
on Tuesday scrapped a plan to merge and create a $9 billion
copper miner.

Lundin also adopted a poison pill takeover defense,
announced plans to seek other bidders and urged shareholders to
reject the Equinox bid, arguing that it undervalued the company
and was fraught with risks.

“During the eleven weeks that have followed the
announcement of the Inmet-Lundin proposal, Equinox’s Offer is
the only alternative that has emerged,” Equinox said.

Equinox, chasing Lundin’s 24.75 percent stake in the
massive Tenke Fungurume copper-cobalt mine in the Democratic
Republic of Congo, along with its mines in Europe, described
Lundin’s planned shareholder rights plan as a delay tactic.

The Equinox offer, a mix of A$8.10 in cash and 1.29 Equinox
shares plus C$0.01, is currently worth about C$7.65 a share.

Lundin’s shares, which have traded at a slight discount to
the Equinox offer, jumped 6.6 percent to C$8.09 on Wednesday,
indicating that shareholders believe a higher bid will emerge.
(Reporting by Euan Rocha; editing by Janet Guttsman)

UPDATE 1-Equinox touts offer to Lundin shareholders