White knight needed by Potash

As BHP Billiton formally launched it $39-billion hostile offer for Potash Corp. of Saskatchewan, the world’s largest fertilizer firm searched for a white knight on... More Below... Posted by on Aug 21st, 2010 and filed under Finance.

As BHP Billiton formally launched it $39-billion hostile offer for Potash Corp. of Saskatchewan, the world’s largest fertilizer firm searched for a white knight on Friday.

Sources say that Potash is soliciting alternative bidders willing to pay more than the $130 a share offered by BHP, the world’s largest mining company.

The BHP bid has set a high bar for rivals, but China—one of the world’s top potash importers—could yet launch its own bid to secure supply of the vital crop nutrient.

Taking out full-page advertisements in Canadian and US newspapers, BHP officially kicked off its offer. The company said that the BHP bid will run until Oct. 19.

Until it could review the offer documents and offer a recommendation at an unspecified time, Potash Corp. advised its shareholders to ignore the bid.

On Friday, Potash Corp.’s shares closed up 1.42 percent to $157.06 in Toronto and gained 0.56 per cent to $149.67 in New York.

(Thanks to Ottawa Citizen and Wikipedia)