BHP 'disappointed' after Canada rejects Potash takeover

4th November 2010, Comments 0 comments

Top miner BHP Billiton said Thursday it was "disappointed" after Canada rejected its hostile takeover of fertiliser giant Potash Corp, adding that it was reviewing its options.

Canada's government said the 39 billion US dollar bid was not of "net benefit" to the country, after the offer was also rejected by both Potash and the provincial government.

"BHP Billiton is disappointed, but continues to believe that the offer is of net benefit to Saskatchewan, New Brunswick and Canada," the Anglo-Australian company said in a statement.

"BHP Billiton will continue to cooperate with the minister and the Investment Review Division of Industry Canada and will review its options."

BHP, the world's biggest miner, said it had 30 days to adjust its bid before Canada's industry minister makes a final decision.

A Chinese-led consortium had considered mounting a rival offer for Potash, the globe's leading fertiliser producer, but backed off. According to reports, Russian firm Phosagro and a Canadian group are also eyeing the company.

BHP's shares rose 3.2 percent to 44.00 Australian dollars (44 US) in early trade on the Sydney stock exchange.

© 2010 AFP

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