Not any more

Sask. mining giant Potash Corp. rejects bid by BHP Billiton

In Canada on August 17, 2010 at 09:16

OTTAWA — Potash Corporation of Saskatchewan announced Tuesday it has rejected an unsolicited bid from Australian mining giant BHP Billiton.

The $130 U.S.-a-share bid for the world’s biggest fertilizer company, which was rejected as "grossly inadequate" by Potash Corp., was 16 per cent above Monday’s closing price of $112.15 U.S. on the New York Stock Exchange.

"The Potash Corp. board of directors unanimously believes that the BHP Billiton proposal substantially undervalues Potash Corp. and fails to reflect both the value of our premier position in a strategically vital industry and our unparalleled future growth prospects," Potash Corp.’s chairman Dallas Howe said in a release.

"We believe it is critical for our shareholders to be aware of this aggressive attempt to acquire their company for significantly less than its intrinsic value. The fertilizer industry is emerging from the recent global economic downturn, and we feel strongly that Potash Corp. shareholders should benefit from the current and potential value of the company. We believe the BHP Billiton proposal is an opportunistic effort to transfer that value to its own shareholders."

© The Financial Post


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