Aquila to accept offer as directors quit

Aquila Resources directors have urged shareholders to accept a $1.4 billion takeover bid by Baosteel and Aurizon.

Aquila Resources directors have urged shareholders to accept a $1.4 billion joint takeover offer by China's Baosteel and local rail operator Aurizon.

Under the deal Aquila chairman Tony Poli, who holds 28.9 per cent stake in the company, and directors Gordon Galt and Denise Goldsworthy will resign from their positions on or before July 11.

Mr Poli and Aquila co-founder Charles Bass, who holds a 10.7 per cent stake in the takeover target, intends to take up the offer.

Baosteel and Aurizon have seen off a rival bid for Aquila from Mineral Resources, which holds just under 13 per cent of the explorer.

The pair were eager to take control of Aquila so they can kickstart the stalled $10 billion West Pilbara Iron Ore Project.

Aquila shareholders now have until July 25 to accept the offer from Baosteel and Aurizon.