Abstract
POTASHCORP HAS REJECTED the $40 billion acquisition offer of Australia’s BHP Billiton, and now the mining giant is taking its bid for the fertilizer company directly to shareholders. The offer “provides PotashCorp shareholders with value certainty and an immediate opportunity to realize the value of their shares in the face of volatile equity markets,” BHP Billiton’s chairman, Jacques Nasser, wrote to PotashCorp’s board. In a conference call with investors, PotashCorp CEO William J. Doyle gave a rebuttal. “We believe we are on the verge of an inflection point where potash demand is expected to return to historical trend line growth and tightened supply and improved pricing,” he said. PotashCorp’s board unanimously rejected BHP Billiton’s $130.00-per-share offer, maintaining that it “grossly undervalues” the company. The offer represents a 16% premium of its stock price on Aug. 16, the day before the offer was disclosed to the public. In mid-2008, when the fertilizer industry peaked before the ...
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