The first stage of this reaction is simply an
S
N
2
reaction.
Intramolecular
reaction is favoured entropically in this reaction.
This reaction can also be carried out using NaOH as a reagent.
References:
Zhang X.X.; Lippard S.J.;
J. Org. Chem
., 2000, Volume 65, Issue 17, 5298-5305
Tanyeli C.; Ozcubukcu S.;
Tetrahedron Asymmetry
, 2003, Volume 14, Issue 9, 1167-1170