BHP v. Potash Corp: Gov’t Update
Yesterday when I was reading the papers, Potash Corp. was considering a poison pill option to survive. Today Saskatchewan government commented on takeover. Here is the quote from Report on Business , Sept 02, 2010
The Saskatchewan government signalled Wednesday that it is unlikely to support a takeover of the Saskatoon-based company by a sovereign wealth fund or other state-owned firm from China or other large potash-buying nation. The fear is that the new owner’s primary motive – to supply food and fertilizer for their populations – would conflict with the province’s goal of supporting its people through higher potash prices.
Now how would BHP approach that problem? I am not sure about that yet.