Hudbay Minerals’ (TSX, NYSE: HBM) second-largest investor, Waterton Global Resource Management, has filed a lawsuit against the Canadian miner in a bid to constrain its ability to solicit proxies.
The private-equity firm, Hudbay says, also claims the company’s management information circular in respect of its yearly and special shareholders meeting scheduled for May 7, contains misrepresentations.
The private-equity firm claims Hudbay’s management information circular about yearly meeting scheduled for May 7, contains misrepresentations.
“Hudbay believes that the litigation is frivolous and will vigorously defend itself. The company will seek to recover its legal costs from Waterton and will provide further updates on this matter as developments warrant,” it said on Tuesday.
Waterton, which holds about 12% of the base metals producer, sparked an ongoing boardroom battle last year, after announcing its intention to try replacing the Toronto-based miner’s chief executive officer and overhaul the board. It recently nominated eight new directors.
The firm has also put forward former Nevsun’s executive Peter Kukielski as potential CEO and board member, suggesting former head of the Toronto Stock Exchange’s parent company, Richard Nesbitt, as a potential chairperson at Hudbay.
The miner has said that replacing 80% of its board, including the chairperson and CEO, was “unnecessary and ill-timed”.
Hudbay mines for zinc and copper, primarily in Canada’s Manitoba province, and also has operations in Peru and Arizona.
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