BHP Bets on Crop Boom With Hostile Potash Bid
BHP Billiton's hostile $38.5 billion takeover offer for one of the world's biggest fertilizer producers, a bet that developing nations will drive a farming boom, could get the Australian iron ore miner involved with yet another commodity prized by China — potash.
In what is likely just an opening salvo, BHP on Wednesday reacted to Potash Corp. of Saskatchewan's dismissal of its bid as "grossly inadequate" by going directly to shareholders with the $130 a share offer. BHP said it was offering a 20 percent premium to the closing price on Aug. 11 — the day before BHP's first approach to Potash directors.
BHP is better known for digging up iron ore and shipping it to resource-hungry manufacturers in China, India and elsewhere. But potash, a key fertilizer ingredient, also is mined and is a big global business dominated by Belarus Potash Co. and Canpotex Ltd., which represents Saskatchewan potash producers.. When shopping for replica a&f handbags, or other replica handbag brands, you must always check the credibility of the company tha
As the world's population grows, more food is needed and more fertilizer to grow crops. Demand for potash, a potassium compound also used in industry, is getting a boost from the global economic recovery and rising demand from emerging giants China and India — the main markets for potash, along with the U.S. and Brazil.
The International Fertilizer Industry Association predicts global demand for fertilizer in 2010-11 will rise by 4.8 percent to 170.4 million metric tons.
That makes the proposed acquisition a big growth opportunity for BHP — particularly because the share prices of fertilizer makers, including Potash, are relatively low after demand faded during the global recession. Potash is the world's biggest producer of the mineral, with about 17 percent of the market, according to investment bank Credit Suisse.. Our clothes have a good-looking design style and comfort materials, choose our true religion wholesale.
"BHP's got tons of cash at the moment,. For A/W 09, gloriously excessive embellishment is absolutely key, championed at herve leger skirts. Just remember one simple rule: Too much is not enough!. This gucci tshirt is released as an important part of the Cruise 2010 Collection and it ranks into our top 10 collect" said Austock Securities senior client adviser Michael Heffernan in Sydney. Potash "looks like it's cheap compared to where its price has been in the past. ... BHP is being a bit opportunistic about it."
BHP Billiton's hostile $38.5 billion takeover offer for one of the world's biggest fertilizer producers, a bet that developing nations will drive a farming boom, could get the Australian iron ore miner involved with yet another commodity prized by China — potash.
In what is likely just an opening salvo, BHP on Wednesday reacted to Potash Corp. of Saskatchewan's dismissal of its bid as "grossly inadequate" by going directly to shareholders with the $130 a share offer. BHP said it was offering a 20 percent premium to the closing price on Aug. 11 — the day before BHP's first approach to Potash directors.
BHP is better known for digging up iron ore and shipping it to resource-hungry manufacturers in China, India and elsewhere. But potash, a key fertilizer ingredient, also is mined and is a big global business dominated by Belarus Potash Co. and Canpotex Ltd., which represents Saskatchewan potash producers.. When shopping for replica a&f handbags, or other replica handbag brands, you must always check the credibility of the company tha
As the world's population grows, more food is needed and more fertilizer to grow crops. Demand for potash, a potassium compound also used in industry, is getting a boost from the global economic recovery and rising demand from emerging giants China and India — the main markets for potash, along with the U.S. and Brazil.
The International Fertilizer Industry Association predicts global demand for fertilizer in 2010-11 will rise by 4.8 percent to 170.4 million metric tons.
That makes the proposed acquisition a big growth opportunity for BHP — particularly because the share prices of fertilizer makers, including Potash, are relatively low after demand faded during the global recession. Potash is the world's biggest producer of the mineral, with about 17 percent of the market, according to investment bank Credit Suisse.. Our clothes have a good-looking design style and comfort materials, choose our true religion wholesale.
"BHP's got tons of cash at the moment,. For A/W 09, gloriously excessive embellishment is absolutely key, championed at herve leger skirts. Just remember one simple rule: Too much is not enough!. This gucci tshirt is released as an important part of the Cruise 2010 Collection and it ranks into our top 10 collect" said Austock Securities senior client adviser Michael Heffernan in Sydney. Potash "looks like it's cheap compared to where its price has been in the past. ... BHP is being a bit opportunistic about it."
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