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While proxy battles are increasing across Canadian business, the mining industry accounted for about half these contests in the past five years, according to a new study.
While proxy battles are increasing across Canadian business, the mining industry accounted for about half these contests in the past five years, according to a new study.
(Serhiy Zavalnyuk/Getty Images/iStockphoto)

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Cost overruns, writedowns leave miners in activists’ sights

Canada’s mining industry should expect more proxy battles as cost overruns and writedowns on large acquisitions collide with activists that are increasingly looking for short-term gains.

Activist shareholders have traditionally gone after companies with poor share performance, expensive board members and operational weak spots. But they are widening their sights to target companies with no glaring flaws.