Barrick outbids China firm for Equinox

AAP-April,26-The world's biggest gold miner Barrick Gold is set to acquire Australian copper miner Equinox Minerals Ltd for $C7.3 billion ($7.1 billion) after trumping a Chinese state-owned firm.
China's Minmetals Resources Ltd withdrew its $6.3 billion hostile bid on Tuesday, saying Barrick's offer was too high.
China's largest metals trader's bid for Equinox would have seen the biggest Chinese takeover of an Australian resources firm and could have created the 14th largest copper producer in the world.
It was also the latest move by a Chinese firm to tap Australia's natural deposits, which has sparked debate about allowing state-owned entities to increase their control over the country's resources.
Minmetals' shares plunged 7.88 per cent to HK$5.26 ($0.68) when it resumed trading Tuesday afternoon, while shares in Equinox, which is Australian and Canadian-listed, shot up more than 12 per cent in Toronto.
Equinox, a Perth-based copper miner, had rejected Minmetals' offer as opportunistic and low ball, which had frustrated its $A4.79 billion takeover offer for Canadian base metal miner Lundin Mining.
However, Equinox has now dropped its bid for Lundin and recommended to shareholders that they accept Barrick's $C8.15 per share offer.
The company had agreed to the offer after a thorough assessment of the options available to it, said chairman Peter Tomsett.
"Barrick is making an attractive offer to our shareholders that recognises the value and potential of our company," he said in a statement.
Shares in Minmetals Resources went into a trading halt on the Hong Stock Exchange on Tuesday, before chief executive Andrew Michelmore said that trying to beat the bid would destructive for its shareholders.
"MMR made a very detailed assessment of the value of Equinox under a range of assumptions and, while we still consider the Equinox assets provide a good fit with MMR's strategy, the price offered by Barrick is above our most optimistic assessment of value," he said in a statement.
Equinox, which is dual listed in Toronto and Sydney, owns the Lumwana copper mine in Zambia and is developing a mine in Saudi Arabia.
Its production guidance for 2011 is 145,000 tonnes.
The acquisition of Equinox would give Barrick growth potential in two of the most prolific copper regions in the world, including Chile and Zambia, it said.
"The acquisition of Equinox would add a high-quality, long-life asset to our portfolio and is consistent with our strategy of increasing gold and copper reserves through exploration and acquisitions," said Aaron Regent, Barrick's president.