Poland to examine KGHM's Quadra deal

Tue Jan 24, 2012 4:53pm GMT
 

* Calls for details analysis

* Shares close 1.2 pct higher

WARSAW Jan 24 (Reuters) - Poland will take a closer look at copper miner KGHM's plans to buy Canadian listed rival Quadra FNX, the treasury ministry said on Tuesday, raising the prospect that it could move to block the C$3 billion deal.

The ministry, which oversees all state assets and controls KGHM via a 32 percent stake, has already in the past week blocked KGHM's proposal for a 3 billion zlotys share buyback.

"The takeover of Quadra is an interesting project, which doesn't mean it shouldn't be thoroughly analysed, as is done in transactions of such caliber," said treasury spokeswoman Magdalena Kobos.

"A detailed analysis doesn't mean there is support or there isn't. We appreciate the fact that the transaction is advanced, but this does not relieve us of conducting a deep analysis of the situation," she said.

Last month, one deputy treasury minister called the Quadra purchase a "great idea".

KGHM's shareholders also last week replaced half of the group's supervisory board, which some observers saw as a move by recently appointed Treasury Minister Mikolaj Budzanowski to reassert the state's influence over the company.

KGHM shares moved into positive territory near the end of Tuesday's session and closed 1.2 percent higher in a flat market.

Canadian and U.S. authorities have already said they have no objection to the purchase, which will allow KGHM to increase its presence abroad.

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