Feb. 8 (Bloomberg) -- KGHM Polska Miedz SA’s supervisory board will discuss the copper producer’s takeover of Canada’s Quadra FNX Mining Ltd. on Feb. 13, Chairman Jacek Kucinski said.
There should be “no surprises” when the shuffled board meets to continue a discussion of the deal begun on Jan. 27, Kucinski said in a phone interview today. Five of the panel’s 10 members were replaced last month at a shareholders meeting in Lubin, southeastern Poland. The previous board approved the Quadra agreement before it was signed on Dec. 6.
“Agreements can always be canceled, but the consequences are so big in this case as to make it practically impossible,” Kucinski said.
KGHM agreed last month to buy Quadra for $2.88 billion in what would be the largest foreign acquisition by a Polish company. KGHM is buying foreign mining companies as it tries to cut production costs and raise output.
Deputy Treasury Minister Zdzislaw Gawlik, responsible for supervising the state’s 32 percent controlling stake in KGHM, was quoted by PAP newswire today as saying he “hopes the board acts reasonably” on the transaction, which showed Polish companies “aren’t falling behind” global mining takeovers such as Glencore International Plc’s purchase of Xstrata Plc.
The ministry wants to know more about the purchase, which was approved before Treasury Minister Mikolaj Budzanowski joined the cabinet, Magdalena Kobos, a spokeswoman for the ministry, said on Jan. 24. Kobos didn’t answer two calls to her mobile phone today seeking comment.
--Editors: David McQuaid, James M. Gomez
#<505095.6355067.2.1.99.7.25># -0- Feb/08/2012 13:24 GMT
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