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Potash Corp. speculated to be targeted again by BHP Billiton

  • Potash (POT+2.3% premarket on speculation that BHP Billiton (BHP) may make another run at acquiring the fertilizer company after failing in a prior buyout attempt in 2010, according to the Globe & Mail.
  • The report says industry speculation is "intense" because "the numbers work, the personalities are closer to working, [and] even the politics are not insurmountable because the landscape has shifted," but it adds that "there is no sign that any potential deal is underway."
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Comments (15)
  • Bill Ehrman
    , contributor
    Comments (23) | Send Message
     
    The reason to own Potash is because its long term earnings and cash flow outlook are both excellent. Acreage for food production and the need for higher yields are a necessity to feed the world. Invest accordingly!
    15 Apr 2014, 09:25 AM Reply Like
  • Mark0f0
    , contributor
    Comments (701) | Send Message
     
    Except that there's a significant glut of potash. So upside is limited until the glut goes away. The capacity additions over the past 5 years have been significant, even without new build mines coming on stream.
    15 Apr 2014, 10:23 PM Reply Like
  • BlurredLines
    , contributor
    Comments (118) | Send Message
     
    See long term trend for potash prices .
    http://bit.ly/1kyhGgG
    16 Apr 2014, 10:36 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1439) | Send Message
     
    Oh heck no, BHP needs to stick far away from POT, their last offer was far more than fair. If anything they need to force them into buying their Jansen Pot project so as to not run POT out of business. Make them buy it at a super premium price.
    15 Apr 2014, 10:39 AM Reply Like
  • Mark0f0
    , contributor
    Comments (701) | Send Message
     
    The offer for POT that BHP made was so underpriced so as to be a joke. Just like BHP's Jansen project, an uneconomic joke. The shareholders would have rejected the BHP POT offer had it ever been put to an actual vote.
    15 Apr 2014, 10:22 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1439) | Send Message
     
    The offer that was made was more than fair and thank GOD those Canadian fools spurned it off. Notice how the stock price tanked not too long after. BHP would have bought at the high end of the tape much like when BHP got into natural gas in the US by acquiring that energy company. The Canadians can't even win the Stanley cup these days.

     

    The Jansen mine once started will crush and destroy the cartel, if memory serves it's almost right next door on some prime land. BHP simply wanted some economies of scale in that the POT mines were next to Jansen.
    Bulls make money, bears make money, but pigs get slaughtered.
    16 Apr 2014, 08:42 AM Reply Like
  • 2839298249
    , contributor
    Comments (379) | Send Message
     
    BHP is not buying POT. This is just some very long speculator planting a false flag.
    15 Apr 2014, 11:35 AM Reply Like
  • Mark0f0
    , contributor
    Comments (701) | Send Message
     
    Indeed. There is no way that BHP could take over POT for less than $50-$70/share, even if the regulatory hurdles were cleared in Canada with foreign takeovers. However, BHP certainly could take a minority position and gain equivalent economic exposure to Potash in excess of what was possible through the Jansen project at less cost and far less risk.

     

    As it stands, BHP Jansen is not economic, and short of a massive demand increase for Potash, isn't likely to ever be.
    15 Apr 2014, 10:21 PM Reply Like
  • MKMCompany2010
    , contributor
    Comments (51) | Send Message
     
    What about the Potash cartel's breaking up ? Will this affect pricing in the future?
    15 Apr 2014, 01:18 PM Reply Like
  • BlurredLines
    , contributor
    Comments (118) | Send Message
     
    Nice pump for not so smart money to get out before POT bombs with earnings .
    If you know anything about Saskatchewan .No sale of POT ever!!
    16 Apr 2014, 10:19 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1439) | Send Message
     
    POT is a bad company.
    16 Apr 2014, 01:58 PM Reply Like
  • skywagon4
    , contributor
    Comments (3) | Send Message
     
    Cant see the gov't of sask approving the sale now when they killed it earlier, but POT still excellent stock at present price, one thing new technology will not affect is the need for potash world wide, especially with burgeoning populations.
    16 Apr 2014, 02:57 PM Reply Like
  • Frenzy466
    , contributor
    Comments (31) | Send Message
     
    Such simple minds, BHP would buy POT to delay their Jansen project. Why build when buy something already running. Potash is finite, their is not subsist ute
    16 Apr 2014, 08:43 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1439) | Send Message
     
    Only reason Pot jumped back a few years was because BHP bought some Pot in the open markets expecting to be able to acquire or merge with POT, but the ethnocentric paranoid Canadians would not permit a decent company like BHP to purchase POT at any price.

     

    So the deal went away and POT plumetted back to normal prices.

     

    Any rumor to the effect that BHP is interested in POT again is a poor joke meant to manipulate the price of POT. Sad because POT could have learned a lot from such a world class miner such as BHP and would have made strides in expanding jobs in the Canadian region.
    17 Apr 2014, 10:08 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1439) | Send Message
     
    BHP offered around 40 billion plus to acquire POT back in 2010.

     

    Now Pot is worth less than 30 billion. ( 4 years later )

     

    Thank you silly Canadians.

     

    The precedent has been set that Pot is not available to any outsiders.
    17 Apr 2014, 10:13 AM Reply Like
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