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Shareholder urges Nevsun to engage with potential buyers

A key shareholder of Nevsun Resources Ltd., Adrian Day Asset Management, urged the miner to enter into "good-faith negotiations with any suitor" regarding a proposed takeover, Reuters reported June 6.

The asset management firm owns 3.1 million shares in Nevsun, which makes it the seventh-largest shareholder based on public filings, said Chairman Adrian Day.

"We would urge the company to use all efforts to maximize value for shareholders ... even if it does mean breaking up the company," said Day.

Nevsun recently attracted a C$1.5 billion joint bid from Lundin Mining Corp. and Euro Sun Mining Inc., which it rejected.

The company spurned the offer, saying it did not value the company appropriately and was structured in a way that was "highly problematic."

However, Nevsun's second-largest shareholder, M&G Investment Management, said it was "positively inclined" toward the Lundin-Euro Sun bid and urged the company to engage more fully with Lundin.

Euro Sun recently revised its portion of the bid, which is not a formal offer, to 50% cash and 50% stock. The proposed offer comprises C$5 per share for Nevsun's entire stock and includes C$150 million in cash from Euro Sun and C$600 million in cash from Lundin along with C$150 million of Euro Sun stock and C$600 million of Lundin stock.

Nevsun CEO Peter Kukielski has said the company would consider running a full sales process if Lundin and Euro Sun made a formal bid and said the company was attracting interest from potential buyers other than Lundin, without identifying other parties.