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Wednesday, Oct 16
Bloomberg: Potash Corp. has best shot in years at control of SQM
- SQM, Chilean potash producer and exporter of iodine and lithium, has sunk to nearly its cheapest valuation in five years, which analysts say allows Potash (POT), which already owns 32% of the company, its best chance in years of fully taking over.
- Julio Ponce, also a 32% owner, fended off POT’s 2006 attempt to wrest control of SQM but may become a more willing seller as a stock rout, a trading investigation and further turmoil in the potash industry pressure his finances.
- While POT’s own stock has dropped, purchasing SQM would allow it to fulfill its strategy of taking control of companies in which it holds stakes.