Contested Acquisition

A leading mineral producer faced significant opposition in its $7.1 billion plan for a friendly combination with a major mining company. Opponents charged that too high a premium was being paid, that the deal would be dilutive, and that there were insufficient reserves to justify the transaction. Political risk also was a consideration, as valuable properties were located in West Africa. In a further complication, a major proxy advisory service advised investors to vote against management. The company responded with a well-planned strategic communications campaign that involved proactive engagement with media and investors, coupled with a dynamic search engine optimization and marketing program. The necessary vote was secured by a comfortable margin and the transaction closed on time.