Freeport-McMoran Lured in Equinox Lowball Lundin Bid: Real M&A

Equinox Minerals Ltd.’s counter offer for Lundin Mining Corp. is so low that it’s leaving an opening for Freeport-McMoran Copper & Gold Inc. to enter the bidding war.

Lundin, a Toronto-based copper and zinc producer, was 1.5 percent above Equinox’s average cash-or-stock offer of C$7.80 a share as of today, signaling traders who bet on mergers and acquisitions expect a competing bid. Equinox, owner of Africa’s largest copper mine, made its unsolicited C$4.6 billion ($4.7 billion) proposal Feb. 28, a month after Lundin agreed to a takeover by Inmet Mining Corp. Equinox has offered a 14 percent premium, the lowest counter bid for a diversified-minerals company, according to data compiled by Bloomberg.