Analyst: BHP-Potash Deal Unlikely

By Steve Ladurantaye

The world's biggest mining company is unlikely to buy Potash Corp. of Saskatchewan (POT), Credit Suisse Group AG said, because it would wreak havoc on its finances.

Speculation has been mounting that BHP Billiton Ltd. (BHP) may consider a bid of up to $40 billion for the Saskatoon-based Potash Corp., but analyst Paul McTaggart said the deal would put BHP at risk of “stretching its healthy balance sheet.

“We do not think BHP likely to go down the alternate path of a large-scale fertilizer company acquisition,” Mr. McTaggart wrote.

Comments

[TraderMark:]

That won't stop people from bringing up each time a hedge fund buys a whole slew of calls of Potash and then dumps it on the public once Najarian sends out an alert about "hot call activity on Potash"
;)

Oct 27 03:19 PM