Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

New push back to mining giant's hostile bid

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- The board of directors of Canadian fertilizer manufacturer PotashCorp. told its shareholders Monday to reject a $38.6 billion hostile takeover bid from Australian mining company BHP Billiton, saying it's in talks with other parties about "superior offers."

Potash's board said in a circular to shareholders that BHP's (BHP) unsolicited offer of $130 per share is too cheap and was timed to take advantage of a worldwide slump in demand for fertilizer stemming from the recession.

The board said it unanimously opposed the offer because it "substantially undervalues PotashCorp. (POT) and fails to reflect both the value of our premier position in a strategically vital industry and our unparalleled future growth prospects."

In the circular, the board said "superior offers or other alternatives are expected to emerge."

The company said it has been in talks with third parties about possible alternatives to the BHP offer, but it did not name any of the parties involved.  To top of page

Index Last Change % Change
Dow 15,688.47 -226.27 -1.42%
Nasdaq 4,233.83 -49.76 -1.16%
S&P 500 1,827.96 -23.90 -1.29%
Treasuries 1.64 -0.07 -3.99%
Data as of 10:44am ET
Company Price Change % Change
Bank of America Corp... 11.35 -0.63 -5.26%
Cisco Systems Inc 24.44 1.93 8.57%
Chesapeake Energy Co... 1.68 -0.01 -0.88%
General Electric Co 27.86 -0.44 -1.57%
Mylan NV 40.81 -9.73 -19.25%
Data as of 10:29am ET
Sponsors

Sections

The crash in oil prices is once again freaking investors out. The Dow lost 250 points on Thursday morning and the Nasdaq dropped closer to a bear market. More

The Fed Chair was criticized on a range of issues, from China and monetary policy to black unemployment and the strong dollar. More

Twitter's stock is sinking fast after the company reported that it lost customers in the fourth quarter of 2015. More

STEM3 Academy was started specifically for students with autism, ADHD and Asperger's Syndrome. Its STEM-based curriculum is breaking through barriers. More