Tuesday, March 24, 2009

HudBay board admits defeat

The meeting scheduled for tomorrow for shareholders of the Toronto-based mining company has been cancelled.

HudBay's board members yesterday acknowledged their defeat in the proxy campaign waged by SRM Global Master Fund LP, a hedge fund based in Monaco that itself controls 11% of the issuer's stock.

Faithful readers will remember my post of March 11th in which I described the incumbent board's efforts to maintain control by sacrificing the CEI, Allen Palmiere.

It obviously didn't work. Here is the statement of capitulation.

HudBay is traded on the Toronto Stock Exchange with the ticker symbol HBM. Its price rose 17 cents yesterday on the news of the incoming SRM-nominated board members.

The one-year chart above shows a deterioration of price through most of last year and a slow recovery through the first quarter of 2009, perhaps in anticipation of this result of the ongoing proxy contest.

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