Equinox Minerals is playing hard to get. The company’s boss on Friday dismissed the “lowball” $6.6bn offer from China’s Minmetals Resources as “clearly opportunistic”. Instead the Australian-Canadian copper miner will plough on with its bid for Lundin – another miner.
But the market reaction suggests that Equinox may still be saving the last dance for Minmetals.
The $6.6bn offer equates to $7 a share. Yet Equinox stock held up on Friday, losing just 0.7 per cent. The shares closed a touch under $7.5o.
The market, therefore, expects Minmetals to come back with a better offer. As the FT reported on Friday, UBS points to $8 a share.
Whether or not – at that price – it’s a good investment depends on the outlook for copper – Equinox’s main product. For a detailed picture on increasing concerns about China’s appetite for copper, read Jack Farchy’s piece in the FT here.
Related reading:
Minmetals – going long on copper, beyondbrics
China’s copper stockpiles weigh on industry, FT
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