HudBay Minerals Inc.’s strategy to buy a reluctant Augusta Resource Corp. is likely quite simple and will not require a higher bid.
The Toronto-based mining company recently extended its hostile offer for Augusta and waived its minimum tender condition. It is a risky plan for HudBay, which already owns 16 per cent of Augusta. The company could fail in its bid to acquire the miner and be stuck with a much larger chunk of Augusta that it would have trouble selling if it so desired. But the strategy has worked for HudBay’s chief executive officer in the past.