April 16, 2019 - 12:54 PM
TORONTO - An activist investor has launched a legal suit against Hudbay Minerals Inc. over the way it's been represented in company filings.
Waterton Global Resources, which owns about 12 per cent of Hudbay stock, has accused Hudbay of making "inflammatory and inaccurate aspersions" against it in an information circular ahead of the company's May 7 special and annual meeting.
The activist investor has been pushing for an overhaul of company management because of what it says is an entrenched leadership lacking key skills and accountability.
Waterton says in the lawsuit filed in the Ontario Superior Court of Justice that the information circular Hudbay sent out ahead of the meeting failed to disclose relevant facts and that it looks to discredit Waterton with false allegations and by representing the firm as a snake in imagery.
Hudbay says it believes the litigation is frivolous and will vigorously defend itself, and has said that the board is well qualified and regularly reviewed.
The mining company has been critical of Waterton's efforts in the past, noting that since it is a mining private equity firm that could compete with Hudbay for assets, it may not have the same interests as other shareholders.
News from © The Canadian Press, 2019