HudBay board to concede defeat to SRM - report
TORONTO, March 23 (Reuters) - HudBay Minerals' (HBM.TO) board of directors is set to concede defeat in a proxy war with top shareholder SRM Global Master Fund after failing to win enough support to stay in power, the Globe and Mail reported on Monday.
Citing unnamed sources, the newspaper said HudBay could put out an announcement later on Monday handing power over to the dissident board, avoiding the need for a scheduled shareholder meeting on Wednesday.
A source close to SRM who had seen the most recent results told Reuters SRM had enough support to win control.
"The die is pretty much cast," the source said. SRM owns 11 percent of HudBay.
SRM plans to reinstall former HudBay Chief Executive Peter Jones in the company's top job. CEO Allen Palmiere stepped down last week and was replaced on an interim basis by Colin Benner.
SRM launched the proxy fight after HudBay announced an C$800 million ($656 million) friendly takeover bid for Lundin Mining (LUN.TO) last fall.
HudBay shares plunged on the deal, with SRM and other shareholders complaining about the price that HudBay was paying and the share dilution that would occur.
HudBay canceled the transaction last month after the Ontario Securities Commission ruled it had to seek approval from its shareholders to issue the 153 million shares it was going to use to buy Lundin.
HudBay could not immediately be reached for comment.
The company's shares rose 5.1 percent to C$5.80 on the Toronto Stock Exchange on Monday.
($1=$1.22 Canadian) (Reporting by Cameron French; editing by Rob Wilson)
