Potash says BHP hostile bid 'substantially undervalued' firm
The world's top fertilizer-maker Potash Corp said Sunday that Anglo-Australian mining giant BHP Billiton's abandoned takeover bid had "substantially undervalued" the Canadian firm's potential.
"BHP Billiton's decision to withdraw its offer underscores the PotashCorp Board of Directors' unanimous belief that the BHP Billiton offer substantially undervalued PotashCorp and failed to reflect both the value of our premier position in a strategically vital industry and our future growth prospects," it said in a statement.
Earlier, BHP Billiton canceled its multi-billion dollar takeover bid for Potash Corp after it was rejected by Canada, and announced a 4.2 billion US dollar share buy-back.
BHP said promises to boost jobs and investment could not convince Canada's industry minister of the hostile bid's benefits despite being "unparalleled in substance, scope and duration."
Potash Corp, in its reaction, said it believed "our opportunity for growth in the industry is unmatched and we are excited about the future.
"As the food requirements of our growing global population continue to increase, we believe PotashCorp has the right strategies in place to enhance earnings in the strong market conditions we see unfolding."
The Anglo-Australian company launched a hostile all-cash takeover bid for Potash Corp in August, valuing it at 38.6 billion US dollars, an offer the Canadian firm immediately rejected as "wholly inadequate."
© 2010 AFP