So far, investors appear to love the fight
The battle for the future of one of Canada’s oldest mining companies, Hudbay Minerals Inc., has spilled into the courtroom, and turned into a mud-slinging contest as the company and one of its largest shareholders lash out at each another.
So far, investors appear to love it: The company’s stock has nearly doubled in the past six months, soaring from $5.17 on Oct. 1 to $10.01 on the Toronto Stock Exchange near close on Tuesday.
That surge began the same day mining-focused private equity firm Waterton Global Resource Management, which controls 12 per cent of Hudbay’s shares and has been leading a campaign to replace most of the board and the chief executive, filed a lawsuit accusing the company of depicting it as “snakes” in a circular sent to other investors.
On Monday, Waterton said it would seek to replace five, rather than a majority of directors on the board, and would no longer seek to replace the chief executive.
“Hudbay issued a Circular that is replete with inflammatory and inaccurate aspersions against (us), including graphics throughout that characterize (us) as snakes,” Waterton’s lawyers at Stikeman Elliot LLP wrote in the lawsuit.