Potash Rejects BHP Billiton Offer as 'Grossly Inadequate'

Fertilizer giant Potash Corp. (POT) has rejected an offer to be bought by mining powerhouse BHP Billiton Limited (BHP), saying that the bid was "grossly inadequate."

BHP Billiton offered to pay $130 per share in cash, Potash Corp said in a statement. Potash Corp's board unanimously rejected the offer. Potash Corp Chairman Dallas Howe sent a letter to Jacques Nasser, chairman of BHP Billiton, saying that the offer fails to reflect the value of Potash Corp's position in the industry, the value of planned capacity expansions and the value of the company's equity investments.

"The Potash Corp Board strongly and unanimously believes that Potash Corp has a bright future as an independent company and nothing in your August 13, 2010 letter provides the basis for Potash Corp to alter its course," Howe said in the letter.
Read Full Story


DJIA 24,462.94 -201.95 -0.82%
NASDAQ 7,146.13 -91.93 -1.27%
S&P 500 2,670.14 -22.99 -0.85%
NIKKEI 225 22,162.24 -28.94 -0.13%
HANG SENG 30,418.33 -290.11 -0.94%
DAX 12,540.50 -26.92 -0.21%
USD (per EUR) 1.23 0.00 -0.26%
USD (per CHF) 0.97 0.00 0.02%
JPY (per USD) 107.68 0.25 0.24%
GBP (per USD) 1.40 -0.01 -0.57%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.