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.


About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on July 2, 2016, in economic impact, political, potash. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: