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 18,400.88 -53.42 -0.29%
Nasdaq 5,213.22 -9.77 -0.19%
S&P 500 2,170.95 -5.17 -0.24%
Treasuries 1.57 -0.00 -0.13%
Data as of 12:13am ET
Company Price Change % Change
Bank of America Corp... 16.14 0.00 0.00%
EMC Corp 28.99 0.00 0.00%
Chesapeake Energy Co... 6.35 0.00 0.00%
General Electric Co 31.24 0.00 0.00%
Freeport-McMoRan Inc... 10.29 0.00 0.00%
Data as of Aug 31
Sponsors

Sections

Martin Shkreli, the reviled drug company CEO who faces federal criminal charges, nearly doubled his $3 million investment in KaloBios. More

Brazil's economy contracted 3.8% in the second quarter. The economic news came hours before Brazil's senate impeached President Dilma Rousseff. More

Instagram introduced a zoom functionality on Wednesday to iOS users. It'll roll out to Android users in the coming weeks. More

The country's most expensive housing markets have appreciated at a much faster clip than homes in the least expensive markets, according to Trulia. More