PotashCorp takeover bid?
Potash Corp. stock soars after rumour of takeover bid
WINNIPEG — Reuters
Published Thursday, Jun. 30, 2016 5:39PM EDT
Last updated Thursday, Jun. 30, 2016 5:39PM EDT
Shares of Potash Corp. of Saskatchewan jumped as much as 6.5 per cent on Thursday after a financial news website reported a rumour that the Canadian fertilizer company had received an unsolicited takeover offer.
The Fly website said chatter among traders suggested Potash had hired an investment bank after receiving an unsolicited proposal.
Potash Corp. spokesman Randy Burton said the company does not comment on market rumours.
The stock pared gains, and by midday was up about 2 per cent in Toronto and New York trading, to $21.33 (Canadian) and $16.41 (U.S.), respectively.
An analyst, who did not want to be named, said he was skeptical there had been an offer, noting that Thursday marked the end of the quarter and that such speculation commonly happens every few months.
The Canadian government blocked a hostile $39-billion bid for Potash from Anglo-Australian miner BHP Billiton PLC in 2010. The proposed takeover was unpopular in Potash Corp’s home province of Saskatchewan, which depends on royalties from potash producers.
As of Wednesday’s close, the stock was down 6 per cent in 2016, and has been pressured by weak prices for the crop nutrient.