June 13 (Reuters) - Canada's Dundee Precious Metals ( DPMLF ) will

acquire UK's Adriatic Metals ( ADMLF ) in a cash-and-stock deal

valued at $1.25 billion, the companies said on Friday, marking

the latest in a string of foreign takeovers of UK firms.

The proposed transaction comes amid a growing wave of

acquisitions targeting UK-based firms, with more than 30 bids

exceeding 100 million pounds announced so far this year, up from

26 during the same period last year.

Toronto-listed Dundee is offering 268 pence per Adriatic

share in a cash-and-stock deal, consisting of 93 pence in cash

and 0.1590 new Dundee shares for each Adriatic share, a 50.5%

premium to Adriatic's closing price on May 19.

Dundee said the combined group will strengthen operations

through an "attractive production, mineral reserve and mineral

resource base and a compelling metal mix."

"The Vareš is a logical fit with our portfolio, and adds

near-term production growth and mine life, a highly prospective

land package, and cash flow diversification," Dundee CEO David

Rae said in a statement.

Dundee, a gold miner with operations in Bulgaria and

Namibia, is acquiring London-listed Adriatic, which is currently

developing the Vares silver project in Bosnia and Herzegovina.