Minmetals seeks $860m equity raise

Minmetals Resources (1208.HK, the Hong Kong-listed branch of China Minmetals), offered investors US$860 million in new shares to raise capital for an ongoing takeover battle, the South China Morning Post reported. In early April the firm attempted a US$6.5 billion hostile takeover of Equinox Minerals (EQN.CAN, EQN.ASX), an Australian firm with substantial copper interests in Africa and the Middle East, as well as takeover plans of its own for Canadian firm Lundin Mining (LUN.CN). Equinox’s board advised shareholders to reject the Minmetals takeover, saying that it undervalued the company. Minmetals, in turn, urged Equinox shareholders to reject the proposed Lundin takeover. Minmetals may come back with a higher offer for Equinox after this round of capital raising in the equity markets. The firm’s share price has dipped 12.4% since it announced the planned takeover of Equinox.