Top Fertilizer Snubs BHP Billiton Offer
The leading Canadian fertilizer manufacturing company Potash Corporation (POT) announced that it has officially rejected the acquisition bid of BHP Billiton (BHP). There have been talks that POT has initiated talks with other parties as China's Sinochem and Vale of Brazil.
In an official statement, PotashCorp CEO and president Bill Doyle said that the decision to decline BHP's offer was made unanimously by their board of directors. He further said, "the offer is wholly inadequate and is not in the best interests of the company, its shareholders or other stakeholders."
BHP Billiton's offer to PotashCorp shareholders was $130 per share, which Doyle said their directors found to be substantially undervaluing the company and its premier position in the industry. This, he said prompted them to urge their shareholders not to tender their shares.
Sinochem representative Li Qiang, confirmed that they have been closely watching BHP's bid on PotashCorp. However, he refused to verify whether they have had talks with PotashCorp. There have been no comments from Vale and PotashCorp regarding the matter.