* Lundin exploring other options
* Lundin-Inmet would have created C$9 bln copper miner
By Pav Jordan and Julie Gordon
TORONTO, March 29 Lundin Mining Corp (LUN.TO)
and Inmet Mining IMN.TO said on Tuesday they had agreed to
walk away from a deal that would have created a C$9 billion
copper producer, and Lundin said it was exploring other
The tie-up would have created a Canadian copper miner
called Symterra with annual copper production of some 500,000
tonnes of copper per year by 2017.
"We have however agreed to mutually terminate the agreement
on the grounds that we could not reach a position that we
thought would be supported by both companies' shareholders,"
the companies said in a joint statement.
Lundin also said it was exploring other sale options and
urged shareholders to reject a rival takeover bid from
Australia's Equinox Minerals EQN.TO, which values Lundin at
"Our exploration of alternatives starts immediately and we
will be actively and aggressively looking for the best value
transaction," said Lundin President and Chief Executive Phil
Lundin also said it adopted a so-called "poison pill"
defense as it searches for alternatives and fends off buyers
looking for bargain basement prices.
"Having agreed to terminate with Inmet, we can now pursue
new alternatives to significantly improve shareholder value and
get a proper premium if we do a change of control transaction,"
said Lukas Lundin, chairman of Lundin Mining.
The Equinox offer is worth about C$7.59 per share, in line
with where Lundin's shares closed on Tuesday.
(Reporting by Julie Gordon and Pav Jordan, writing by Alastair
Sharp; Editing by Ted Kerr and Carol Bishopric)