Two independent proxy advisory firms have thrown their support behind a rights plan that would protect shareholders of Ivanhoe Mines Ltd. (TSX:IVN) from any potential takeover bid.
The Vancouver-based miner, which has a market capitalization of $7.68 billion, said today that RiskMetrics Group and Glass Lewis & Co. recommend shareholders approve the company's new shareholders' rights plan announced April 5.
Ivanhoe said the plan would ensure fair treatment of all shareholders during any takeover bid for Ivanhoe's outstanding common shares, or other transaction that would change control of the company.
The company has not announced any such takeover bid, but in late March closed a $241 million private placement with mining giant Rio Tinto plc (NYSE:RTP) that saw Rio increase its ownership in the company to 22.4% from 19.6%.
Rio Tinto also holds rights to the company that could see it increase its stake in Ivanhoe to 46.6% over the next 19 months.
Ivanhoe's core asset is the Oyu Tolgoi copper-gold project in Mongolia, but it also owns 65% of SouthGobi Energy Resources Ltd. (TSX:SGQ), an 81% stake in Ivanhoe Australia (ASX:IVA), and 50% of Altynalmas Gold Ltd.
Ivanhoe's share price range during the last week: between $17.93 and $17.44; 52-week high: $18.98; 52-week low: $5.51.