Jaguar Financial (JFC.TO) is appealing a decision by the Toronto Stock Exchange to not force HudBay Minerals (HBM.TO) to hold a shareholder vote ahead of its planned takeover of Lundin Mining (LUN.TO).

The TSX gave conditional approval for the takeover in December, but Jaguar, a HudBay shareholder and vocal opponent to the takeover, has argued HudBay should be required to hold a vote of its own shareholders, in addition to getting approval from Lundin shareholders.

In a statement, Jaguar said it has asked for a hearing with the Ontario Securities Commission to set aside the TSX decision, force HudBay to hold a shareholder meeting, and stop HudBay from closing the deal until the meeting is held. The transaction is expected to close by the end of May.

Separately, HudBay said it had been notified that a third party had submitted a request for an OSC meeting to review the TSX decision. It did not identify Jaguar as the third party.

HudBay's shares are down about 30 percent since the company unveiled the all-share deal in late November. Investors have complained that the transaction will weigh down HudBay's cash-strong balance sheet with riskier assets.

HudBay has offered 0.3919 of a share for each Lundin share, which values Lundin at C$1.45 a share, or about C$560 million ($660 million), at current prices.

While Lundin's share price has mostly lagged the offer, it has risen in the past two weeks and was at C$1.44 on Thursday, just shy of the bid price. HudBay was at C$3.69.

HudBay has argued the deal is needed to boost its resources and secure future production when metals prices rebound from their recent plunge.

Jaguar has been trying to break up the deal since the day it was announced, and argues the deal is a related-party transaction, due to a 19.9 percent stake in Lundin HudBay holds due to a private placement announced concurrently to the takeover bid.

HudBay said on Dec. 31 it would hold a special meeting of shareholders on March 31 to vote on a proposal from a third party to remove its board and elect a new slate.

($1=$1.18 Canadian) (Reporting by Cameron French; editing by Pater Galloway)

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