Tags: Potash | Declines | Canada | Blocks | BHP | Takeover | Offer

Potash Corp. Declines After Canada Blocks BHP’s Takeover Offer

Thursday, 04 Nov 2010 02:01 PM

 


Potash Corp. of Saskatchewan Inc. fell the most in more than two months after Canada blocked BHP Billiton Ltd.’s $40 billion hostile bid for the world’s largest fertilizer producer.

Potash Corp. dropped $5.21, or 3.6 percent, to $140.29 at 10:13 a.m. in New York Stock Exchange composite trading. The shares earlier tumbled 3.8 percent to $139.91, the biggest intraday decline since Aug. 11. The Saskatoon, Saskatchewan- based company gained 34 percent this year through yesterday.

“The stock is trading on its fundamentals” rather than speculation that BHP will increase its offer, Louis Meyer, a New York-based special-situations analyst at Oscar Gruss & Son Inc., said today in a telephone interview.

Canada yesterday denied approval of BHP’s $130-a-share offer for Potash Corp., saying the transaction wouldn’t provide a “net benefit” to the country. BHP has 30 days to appeal, at which point the government will make a final decision, according to a statement read by Industry Minister Tony Clement.

Clement declined to give additional reasons for the ruling.


© Copyright 2015 Bloomberg News. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved