Hissing snakes and ‘predatory schemes’: How the fight for Hudbay Minerals descended into name-calling – by Gabriel Friedman (Financial Post – April 17, 2019)


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.

For the rest of this article: https://business.financialpost.com/commodities/mining/hissing-snakes-and-predatory-schemes-how-the-fight-for-hudbay-minerals-descended-into-name-calling

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