China's Minmetal Hostile Takeover Bid for Canada's Equinox: Global Players Eye Zambian Copper Interests

Toronto-based Equinox Minerals Ltd. made a hostile bid for Lundin Mining Corporation in February 2011. Now Canada's Zambia-focused copper miner is the target of a hostile takeover bid by Chinese-owned Minmetals Corp. Minmetals C$7 per share offer (US$6.5b) for Equinox marks the first time a Chinese company has made a bid for a Canadian mining interest.

Global mining reports notes the strategic shift by Beijing government officials in allowing this unsolicited bid. It is, however, quite consistent with China's desire to increase its global mining assets. It also highlights the growing international focus on Africa's mining resources, as seen by the major mining interests of Anvil Mining and Tiger Resources. The development of this potential deal should be an exciting one to watch.

"The significance of the bid highlights not only China’s appetite for copper, but its growing presence in Africa," confirms Foster Stockbroking analysts, reporting to WSJ.

Dealbook players: Minmetals' legal counsel in the hostile takeover bid are Davies Ward Phillips & Vineberg LLP (Canada), Freehills (Australia) and Linklaters (Hong Kong).

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