Globe News ConfirmsGlobe says HudBay board expected to step down
2009-03-24 05:51 ET - In the News
The Globe and Mail reports in its Tuesday, March 24, edition that dissident shareholders appear to be winning the day at HudBay Minerals following the current board's failure to win enough support in an acrimonious proxy battle. The Globe's Andy Hoffman writes that unnamed sources say HudBay's incumbent board of directors will concede defeat to a group of directors nominated by the company's largest shareholder, hedge fund SRM Global Master Fund. A transfer of power to the dissident slate of directors would avoid an embarrassing public defeat at a meeting of shareholders scheduled to be held Wednesday in Toronto. HudBay's current board came under fire from SRM and other major investors after it offered very rich terms to merge with rival Lundin Mining late last year. Investors chastised HudBay and its management for pursuing Lundin in a transaction that would have boosted its share count by 100 per cent without giving HudBay shareholders a vote on the deal. HudBay's current directors include chairman Norman Anderson, interim chief executive officer Colin Benner and Lloyd Axworthy, Canada's former minister of foreign affairs. SRM's slate of nominees include Peter Jones, HudBay's former CEO.