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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2324)	9/14/2010 12:09:46 AM
From: richardred	Respond to of 7256

Potash in talks with others to foil BHP takeover bid Explore related topics Asia Pacific Potash Corporation of Saskatchewan Inc. BHP Billiton Ltd. BHP Billiton PLC Story Quotes Comments Screener (3) Alert Email Print Share By Jim Jelter, MarketWatch SAN FRANCISCO (MarketWatch) -- Canadian fertilizer giant Potash Corp. of Saskatchewan told its employees Monday it has held talks aimed at thwarting a hostile $38.6 billion takeover bid by BHP Billiton Ltd. In an open note to its 5,000 staff, Potash President and Chief Executive Officer Bill Doyle again rejected BHP Billiton's unsolicited takeover offer of $130 share, calling it "wholly inadequate." While acknowledging that Anglo-Australian mining giant BHP Billiton has put Potash in play, Doyle did not say where a rival bid might come from. "You should know that PotashCorp has already been approached by, and has initiated contact with, a number of third parties who have expressed an interest in considering alternative transactions. We believe BHP will not be the only bidder in this process, as we continue to seek to maximize value for all of our stakeholders," Doyle said. The company said three weeks ago that it had reached out to several third parties who might be interested in "alternative transactions" but did not disclose who those parties might be. Chinese chemical company Sinochem International Corp. /quotes/comstock/28c!e:600500 (CN:600500 10.76, -0.12, -1.10%) is among the companies cited as a possible bidder for Potash. Read report on Chinese interest in Potash. According to an article last week in The Wall Street Journal, Sinochem has approached the Singapore state investment company Temasek Holdings to forge a possible joint bid for Potash. U.S.-traded shares of Potash, the world's biggest potash miner, slipped 86 cents, or 0.6%, Monday to close at $147.98. But the stock has soared nearly 33% since BHP initiated its takeover in mid-August. marketwatch.com

To: richardred who wrote (2324)	11/14/2010 10:22:09 PM
From: richardred	Read Replies (1) \| Respond to of 7256

BHP Withdraws Takeover Offer for Potash By MICHAEL J. DE LA MERCED 7:50 p.m. \| Updated BHP Billiton said Sunday that it withdrew its $38.6 billion unsolicited takeover offer for the Potash Corporation of Saskatchewan, the world’s biggest producers of a key fertilizer ingredient, after the Canadian government blocked the potential deal. BHP’s decision was all but preordained after the Canadian government’s decision earlier this month, which scuttled it for not representing a “net benefit” for Canada. While BHP had 30 days to change the Canadian industry minister’s mind, people briefed on the matter have said that such efforts were probably futile. “Unfortunately, despite having received all required anti-trust clearances for the offer, we have not been able to obtain clearance under the Investment Canada Act and have accordingly decided to withdraw the offer,” Marius Kloppers, BHP’s chief executive, said in a statement on Sunday. Both Potash and the government of its home province, Saskatchewan, had fiercely lobbied Canada’s Conservative government to block the deal, citing what amounted to national security concerns. Potash produces about half of the world’s supply of the eponymous material and hauls in significant revenue for the Saskatchewan government. Potash itself had argued that BHP’s offer was too low. “BHP Billiton’s decision to withdraw its offer underscores the PotashCorp board of directors’ unanimous belief that the BHP Billiton offer substantially undervalued PotashCorp and failed to reflect both the value of our premier position in a strategically vital industry and our future growth prospects,” the company said in a statement. In its statement on Sunday, BHP outlined a host of concessions it had been willing to make to secure passage of the deal, including investments in Saskatchewan and the foregoing of tax breaks. The international mining giant said it will instead reinstate a stock-buyback program, spending up to $4.2 billion repurchasing shares. It will also press forward with plans to develop its own potash-mining operations in Saskatchewan, a process that will likely take years to bear fruit. The Potash defeat marks the third failed deal-making attempt by BHP, after both a hostile bid for and a proposed joint venture with Rio Tinto collapsed in recent years. The Canadian national government’s decision was made under the Investment Canada Act, which vests authority under the industry minister and requires only that companies show a “net benefit” to Canada, a largely subjective assessment. dealbook.nytimes.com