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CORRECTED-UPDATE 1-Equinox weighs $6.5bln bid from Minmetals, extends Lundin offer

Published 04/05/2011, 12:17 AM
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(Corrects Equinox Toronto code to EQN.TO)

* To give view on Minmetals $6.5 bln offer in a few days

* Extends offer for Lundin to April 29, shareholder vote April 26

* Equinox Toronto shares close 8% above Minmetals offer

* Lundin shares slide 4% to well below Equinox's offer (Adds details)

MELBOURNE, April 5 (Reuters) - Equinox extended its $4.8 billion bid for Lundin Mining and postponed a vote on the deal by two weeks on Tuesday, awaiting a formal $6.5 billion takeover offer from China's Minmetals Resources .

Minmetals, China's biggest metals trading firm, unveiled plans to launch a C$7 a share bid for Equinox on Monday, chasing Equinox's copper assets in Zambia and Saudi Arabia.

Equinox said it was considering the proposal and would update investors on it "in the coming days".

It postponed a shareholder vote on the Lundin deal to April 26 to give investors time to consider the board's and any other recommendations on Minmetals' C$7 a share offer and the Lundin deal before they have to vote.

Equinox's Toronto-listed shares closed up 32 percent at C$7.55 on Monday, indicating investors are holding out for a higher bid.

The jump in Equinox's shares bolstered the value of its offer for Lundin to C$8.92 a share, but also made it less likely that Equinox would go ahead with its bid.

Equinox has been chasing Lundin for its Neves Corvo copper-zinc mine in Portugal and its 24.75 percent stake in the massive Tenke Fungurume copper mine in the Democratic Republic of Congo.

Lundin rejected Equinox's offer and last week flagged it was looking for a white knight or knights to trump Equinox.

With Equinox receiving the unsolicited bid from Minmetals, investors trimmed their bets on a takeover battle erupting for Lundin, sending Lundin's shares down 4 percent to C$8 on Monday, well below the value of Equinox's offer. ($1 = 0.970 Canadian Dollars) (Reporting by Sonali Paul; Editing by Ed Davies)

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