JFC condems decision of HudBay re: will of shrhldrJaguar condemns decision of HudBay directors to oppose will of shareholders and vows to require a shareholders meeting
TORONTO, Dec. 11 /CNW/ - Jaguar Financial Corporation ("Jaguar") (TSX:
JFC) today condemned the decision of the Board of Directors of HudBay Minerals
Inc. ("HudBay") (TSX: HBM) for continuing to oppose the will of HudBay's
shareholders and for using a legal technicality to attempt to block the good
faith requisition of a shareholders meeting by Jaguar and other shareholders
for a shareholders meeting. Jaguar and others had requisitioned a HudBay
shareholders meeting to consider and vote on the future composition of
HudBay's board in light of HudBay's proposed combination with Lundin Mining
Corporation ("Lundin") (TSX:LUN).
As well as questioning the process followed by HudBay's independent
directors Mr. M. Norman Anderson, Dr. Lloyd Axworthy, Mr. John Bowles, Mr.
Ronald Gagel, and Mr. R. Peter Gillin that resulted in their approval of the
agreement with Lundin (the "Lundin Transaction"), Jaguar questions their
decision to refuse to hold a shareholders meeting. Jaguar believes that
HudBay's obstructionist strategy is an effort to prevent HudBay's shareholders
from voting down a transaction HudBay knows the shareholders will never
approve.
"The move by the HudBay Board and, in particular, the independent
directors to oppose the will of shareholders, and to refuse to seek their
approval of a transaction that will alter fundamentally and in a decidedly
negative manner the company that they own is unconscionable. It is a blatant
attempt to avoid the scrutiny afforded to shareholders in a meeting to
consider the transaction. Clearly, HudBay is not providing shareholders a vote
because it knows the deal is not good for shareholders and would be turned
down if a vote were held," said Jaguar Chief Executive Officer, Vic Alboini.
Jaguar is in the process of registering shares and will follow through on
its requisition of a shareholders meeting. Jaguar is also reviewing all of its
legal options with counsel and remains strongly committed to take all steps
that may be available to it to require a meeting of shareholders. Jaguar
intends to pursue all of its rights and remedies in respect of this matter,
and will never accept that the directors of HudBay are entitled to
disenfranchise HudBay's owners in respect of a transformative transaction so
clearly ill-advised as the Lundin Transaction.
"The directors of HudBay are in hiding. They are afraid. They do not want
this transaction reviewed by their owners. They do not care about their
owners," said Mr. Alboini. "It is quite something. 'Forget about the
opposition to this deal. That is not my concern or my job.' That is the
position of the independent directors."
Concerned HudBay Shareholders
Jaguar has received considerable feedback from various shareholders of
HudBay expressing their views about the Lundin Transaction and the need for a
shareholder meeting. Any concerned shareholder of HudBay who wishes to discuss
the situation may contact any of the following at Jaguar: