https://www.theglobeandmail.com/
Shares in First Quantum Minerals Ltd. nosedived on Monday after it batted away speculation it could be acquired any time soon, instead saying it has held talks about selling a minority stake in some of its Zambian assets.
Last Thursday, Bloomberg reported that the Toronto-based senior copper miner had attracted takeover interest in light of its floundering share price. The Globe and Mail later reported that Chinese state-owned firm Jiangxi Copper Co. Ltd. had approached First Quantum but hadn’t yet made a formal takeover offer. First Quantum’s share price jumped a total of 20 per cent in the last two trading sessions of last week.
In a statement on Monday, First Quantum said it “has not engaged in any discussions regarding a takeover bid or other change of control transaction and has no knowledge of potential take-over bids, change of control transactions or proposals.”
Shares in the miner fell 9.7 per cent on Monday to close at $11.03 on the Toronto Stock Exchange. “There was definitely the enticement that someone was going to take the company out, and people traded into that,” said Darren Sissons, portfolio manager with Oakville, Ont.-based Campbell, Lee & Ross Investment Management.
“As with all trading on rumour, if that trade falls apart, then there’s significant downside.” First Quantum said it was “aware of speculation” regarding a potential transaction with China’s Jiangxi, but the company didn’t say whether it had held talks with the company or not.
For the rest of this article: https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-first-quantum-weighing-sale-of-minority-stake-in-zambian-copper-assets/