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Despite Saskatchewan's adamant opposition, a Canadian federal agency has reportedly recommended...

Despite Saskatchewan's adamant opposition, a Canadian federal agency has reportedly recommended approval for BHP's (BHP +1.45%) bid for Potash (POT +1.2%), though it has attached conditions including government monitoring. PM Stephen Harper needs to make a final decision on the bid by tomorrow.
Comments (2)
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    The following articles cast doubt on the Canadian Federal Government’s approval for this takeover and were published subsequently to the report in question.

     

    www.theglobeandmail.co.../

     

    www.thestar.com/busine...

     

    www.theglobeandmail.co.../

     

    www.theglobeandmail.co.../

     

    www.theglobeandmail.co.../
    2 Nov 2010, 06:13 PM Reply Like
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    The trend against the BHP take-over bid for POT in Canada is shaping up quickly as can be seen from the following Angus Reid poll.

     

    www.angus-reid.com/wp-...

     

    Several points merit noting:
    (a) Until recently the fate of POT was of significant interest among the general public only in Saskatchewan, Alberta and Manitoba;
    (b) These three Provinces, however, are overwhelmingly represented by the Conservative Party in the Federal Parliament;
    (c) It follows that the strong antipathy to the proposed takeover in these three Provinces (which transcends party affiliation) must be cause for serious concern to the Federal Government.

     

    While it might be argued that the fact the takeover issue has to date attracted fairly low interest outside the Prairie Provinces means that, even though the initial reaction to a Federal Government approval of a BHP takeover would be negative, this fact would quickly fade as a potential issue in a future election (at least outside Saskatchewan). Arguably the better view is that, to the contrary, an BHP takeover approval at this time would solidify and expand the negative reaction throughout Canada and this reaction would constitute a serious drag on Conservative Party support over the next 6 to 12 months.

     

    The upshot of all this is that this Wednesday the Federal Government (unless they have seriously misjudged their predicament or have negotiated very major concessions from BHP that address the Canadian control of its potash industry issue) will be to deny approval for the proposed takeover.
    3 Nov 2010, 02:33 AM Reply Like
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