Proxy contest sours as activist investor tries to constrain Hudbay's ability to solicit proxies
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Hudbay said the private equity firm's move was a ploy to stop it from soliciting proxies as a proxy contest between the two parties heats up.
Waterton, Hudbay's second largest shareholder at 12.1%, last year gradually stepped up its dissent, urging the miner to replace its chief executive and nominating its own slate of five directors to the board.
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Waterton argued Hudbay's recently filed management information circular related to its annual and special shareholder meeting scheduled for May 7 "contains misrepresentations", Hudbay disclosed.
It said the litigation was "frivolous".
Waterton said in a letter to Hudbay shareholders on Monday that "Hudbay's recent disappointing actions and desperate unprofessional tactics show that adult supervision is urgently needed".
It said the board had ignored a settlement proposal supported by about 35% of shareholders, demonstrating deep entrenchment.
"Hudbay is at a strategic inflection point and desperately requires effective strategic thinking and fresh perspectives on the board to create real value for shareholders."