Australian copper miner Equinox Minerals on Wednesday recommended shareholders accept a Can$7.3 billion ($7.7 billion) takeover bid by the world's largest gold producer Barrick Gold.
Canada-based Barrick jumped into the fray by trumping a Aus$6.3 billion ($6.5 billion) bid from Chinese state-owned firm Minmetals Resources.
"The board of directors of Equinox has unanimously determined that the offer is fair to the holders of Equinox common shares and in the best interests of the company," Equinox said in a statement.
"It has agreed to recommend to shareholders to accept the offer."
The news sent Equinox shares 50 cents, or 6.8 percent, higher to close at Aus$7.84, their highest since the company was listed on the Australian stock exchange in 1994.
However, in Toronto Barrick fell 3.5 percent to Can$47.75 on Tuesday as investors continued to question the logic behind its move.
Barrick's offer translates to Can$8.15 a share for Equinox, which is also listed in Toronto.
It needs to secure acceptances from two-thirds of shareholders for a takeover that would give Barrick growth potential in two of the world's most copper-rich regions — Chile and Zambia.
The offer is conditional on Equinox dropping its bid for Canada's Lundin, which mines base metals in Portugal, Sweden, Spain and Ireland, and which it has agreed to do.
Equinox had rejected Hong Kong-listed Minmetals' offer as "opportunistic and low ball".
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