GREY:FNKLF - Post by User
Post by
marketmineron Mar 13, 2007 9:17am
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Post# 12407144
Takeover conidate??? FNX or FNI
Takeover conidate??? FNX or FNI
NP says HudBay may have FNX Mining in its sights
2007-03-13 09:01 ET - In the News
See In the News (C-HBM) HudBay Minerals Inc
The National Post reports in its Tuesday edition that HudBay Minerals appears to be on the merger and acquisition trail following a successful 2006. The Post's Jonathan Ratner writes in the Trading Desk column that HudBay saw fourth quarter profits rise 277 per cent to $165.8-million on higher metal prices. HudBay may seek a tie-up with a North American nickel producer. UBS analyst Tony Lesiak thinks FNX Mining is the most likely takeover candidate. First Nickel may also be in the running. Both companies keep headquarters in Sudbury. "With HudBay centred in FlinFlon and FNX in the Sudbury basin, we find the concept of these companies merging interesting as it would combine two of Canada's most prolific mining camps," Mr. Lesiak said in a research note. He added that both companies hold extensive land packages in their respective regions. He said they run under a similar business model. Meanwhile, forming a large capitalization miner based in North America could offer investors seeking exposure to nickel a replacement for Inco and Falconbridge. HudBay shares closed at $20.75 Monday on the Toronto Stock Exchange. FNX stock closed at $22.70. First Nickel stock closed at $1.19.