PCA shareholders give nod to offer by Rio Algom

Preferred shareholders of Potash Co. of America (pca) have voted in favor of an amalgamation between their company and a wholly-owned subsidiary of Rio Algom Ltd.

Rio Algom reports the preferred shareholders voted 98.9% in favor at a special meeting. Rio Algom, a producer of uranium, copper, molybdenum and steel, controls all of pca’s common shares.

Under the amalgamation plan, the shareholders, representing 1.2 million preferred shares of pca, will receive one redeemable retractable convertible second preference share, series B, of Rio Algom for each pca preferred share.

Until Feb 12, shareholders may redeem their Rio Algom second preference shares, series B at $18 per share or convert the Rio Algom shares on a one-for- one basis into common shares of Rio Algom.

On Feb 15, outstanding Rio Algom second preference shares, series B will be redeemed at $18 per share.

PCA has two potash mines in Canada, one in Saskatoon, Sask., which was closed in February of this year because of flooding problems, and the other in Sussex, N.B.