Quadra FNX agrees to takeover bid from Polish company

Mid-tier copper mining company Quadra FNX has agreed to a $3.5 billion takeover offer from Polish company KGHM Polska Miedz S.A. KGHM is the world's ninth largest producer of copper and third largest producer of silver.

The company announced the deal in a Dec. 6 press release, in which Quadra FNX president and CEO Paul Blythe said the deal had been negotiated over the last few weeks.

"KGHM participated in the process Quadra FNX ran to identify a joint venture partner for Sierra Gorda earlier this year,” Blythe said in the release.

“In recent weeks KGHM came forward with a proposal to acquire the company, which has resulted in the agreement we are announcing today. This proposal represents a significant premium to the current share price and we are recommending that our security holders vote in favour of the transaction."

Shareholders and warrant holders will be asked to approve the arrangement at a meeting to be held in late February. To be completed, the arrangement must have 66 2/3 approval of votes cast.

The deal is expected to close during the first quarter of 2012.

Quadra FNX's Sudbury-area operations comprise the Levack Mine, including the Morrison Deposit, the Podolsky Mine and the McCreedy West Mine, as well as the polymetallic Victoria development project.

Posted by Heidi Ulrichsen