HudBay Minerals seeks to block Augusta’s poison pill

|By:, SA News Editor

HudBay Minerals (HBM) attempts to strike down Augusta Resources' (AZC) shareholder rights plan, asking British Columbia's securities regulator to cease trade AZC’s poison pill so that its hostile takeover bid can proceed as planned.

CEO David Garofalo says AZC's board has had more than enough time to study its alternatives after receiving HBM's hostile takeover bid.

HBM is offering 0.315 of its shares for each AZC share, which gives the bid a value of slightly more than $400M, but AZC shares have traded well above the offer price as investors expect a higher bid.