Potash Corp. of Saskatchewan Inc. has contacted other companies about creating an alternative to BHP Billiton’s $38.6 billion US offer to acquire the fertilizer giant.
In a new video posted on PotashCorp’s website Tuesday, company president and CEO Bill Doyle said he believes BHP Billiton -Â the world’s largest mining company -Â will not be the only bidder for the Saskatoon-headquartered business.
“A number of third parties have already expressed interest in alternative transactions – some who we’ve approached and others who initiated contact on their own,” Doyle said in the video post.
“While we continue to engage with interested parties, we believe – and many of our shareholders agree – that PotashCorp is poised to achieve results as an independent, standalone company that far surpass BHP’s inadequate offer.”
Saying over the past 15 years the company has generated an annual, compounded shareholder return of 19 per cent, Doyle again stressed his belief that the BHP Billiton offer undervalues PotashCorp.
“We feel strongly that we can create more value by pursuing alternative options or by continuing to execute our strategic plan,” he said.
In the eight new, brief videos posted to the potash company’s website, Doyle also commented on the improving economics for potash, the case for brownfield mine upgrades, the “opportunistic” timing of BHP Billiton’s offer, the role of arbitrageurs (people who look to profit from price inefficiencies in the market) in the takeover bid and the value of the company’s employees.
Doyle again asked PotashCorp shareholders not to sell to BHP Billiton.
The shareholders have until Oct. 19 – the date BHP Billiton’s offer expires – to make their decision.
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