Sunshine Mining Bids $865 Million for Rexene

Sunshine Mining Co. said today that it agreed to acquire plastics maker Rexene Corp. for cash and securities worth $865 million, a step the silver mining company hopes will help it escape the cyclical trap of commodity prices.

Sunshine is offering $28 per share in cash and securities, a premium of $5.50 above the price of the stock today. Rexene shares fell $2 to $22.50 after the deal was announced.

Sunshine has not yet detailed how the $28-a-share price will be broken down into cash and stock, and some securities analysts said the uncertainty was pushing the price of Rexene shares down. Dallas-based Sunshine said the tentative agreement will become binding only if Sunshine and Rexene can agree on the specifics of the cash and securities mix.

Dallas-based Rexene manufactures thermoplastic resins and petrochemical products through its Rexene Products Co., formerly known as El Paso Products Co.

Rexene said last week that it was in talks to be acquired.