Potash Corp. of Saskatchewan Inc. has rejected a $38.6-billion US bid by BHP Billiton – but now the Australia-based company is taking its offer to shareholders of Potash Corp.
BHP Billiton is offering shareholders a $130 US per share cash deal.
In a conference call with shareholders on Tuesday Potash Corp. CEO Bill Doyle emphasized it is not in their best interest to enter into discussions with BHP. Doyle is not opposed to selling the company, but he is not willing to sell at the price being offered.
“Together we concluded that the BHP proposal grossly under values Potash Corp. and fails to reflect both the value of our position in a strategically vital industry and our unparallel future growth prospects,” Doyle said in Saskatoon on Tuesday.
Shares reached an all-time high in 2008 at $240. Tuesday’s announcement sent shares skyrocketing. At the end of the day it closed at $147, which is up about 26 per cent.
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