Are Quadra FNX Mining Owners Getting a Good Deal? (TSE: QUX)

Polish company KGHM made a $15 per share bid for Quadra last week, yet shares rallied higher than the offer price on hopes that a higher bid will be made. While the 35% premium offered by KGHM over the monthly average price makes it seem like a good deal, are investors really getting the real worth from their Quadra investment?
While management accepted the deal rather quickly after examining the tall premium, the offer values Quadra at a mere 0.83 times net asset value. According to an analyst at TD Newcrest, is quite low compared to other deal. They see room for a higher offer.

Furthermore, Quadra FNX was at $15 not long ago. The huge market sell off has prompted KGHM to take advantage of the bargain basement prices, even if QUX may not have deserved to have fallen so low in the first place. The 52-week high of the stock is $17.55, and given that copper and gold prices have been extremely strong, it is surprising that the stock did not run up much further. Market sell off aside, all arrows point to management and strategic execution. Of course the mining industry has its own risks with weather and natural disasters, but ever since the merger of Quadra and FNX the stock has performed rather poorly. It is unclear whether higher compensation comes with the management of a larger firm such as Quadra FNX, but what is clear is that given the company's less than 10 PE ratio even after the deal, management may have looked over the deal too hastily and may not be doing what's right for the best interests of shareholders.