Ivanhoe sets shareholder rights plan
Ivanhoe Mines Ltd. has adopted a shareholder rights plan to give it time to evaluate any potential takeover bid it may receive in the future. The announcement, unveiled late on Monday night, comes just a few months after the company hired investment bankers to evaluate strategic alternatives. While Vancouver-based Ivanhoe is not expected to pursue a takeover bid, it is not ruling anything out. David Huberman, Ivanhoe’s lead independent director, said the shareholder rights plan is “not in response to any specific initiative by any particular company.” Ivanhoe, run by financier Robert Friedland, has to raise a staggering US$4-billion to develop its giant Oyu Tolgoi copper-gold mine in Mongolia. That huge capital requirement led the company to start reviewing all of its options with advisors, including selling off subsidiaries and a potential takeover. Ivanhoe is spending US$758-million on the project this year after it finalized an investment agreement with the Mongolian government. The shareholder rights plan will be voted on at the company’s annual meeting on May 7.
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