- Canada splits on BHP's Potash bid. A Canadian government agency has reportedly recommended approval for BHP Billiton's (BHP) $40B hostile bid for Potash (POT), despite the objections of Saskatchewan's provincial government. The approval, first reported in the National Post, has conditions attached, including government monitoring. The final decision on the matter now rests with Canada's Prime Minister Stephen Harper, who has said he will make an announcement no later than Wednesday. Meanwhile, recent options trading in Potash suggests investors are expecting a higher bid, either in the form of a sweetener from BHP or a higher bid from a rival. Premarket: BHP +1.45%, POT +1.2% (7:00 ET).
- BBVA bets on Turkey's banking sector. BBVA (BBVA) reached a deal to buy a 24.9% stake in Turkey's fast-growing Garanti bank for $5.84B. BBVA is buying the stake from Dogus Holding and GE (GE), and will finance it with a €5B ($6.9B) rights offering. The deal will help BBVA reduce its dependence on the weak Spanish domestic market, while giving it a foothold in Turkey's relatively resilient banking sector. Premarket: GE +0.9% (7:00 ET).
- BP's profit spill. BP (BP) reported its Q3 net profit fell 66.5% to $1.79B after paying another $7.7B in charges related to the Gulf of Mexico oil spill. BP's total charges linked to the spill have risen to $39.9B. Still, the company believes its 2011 capital expenditure will not be derailed by the high cost of the spill and should “exceed the $18B previously indicated.” Third-quarter replacement cost profit was $1.9B. Bob Dudley, the company's new CEO, said "these results demonstrate that BP is well on track for recovery after the tragic accident on the Deepwater Horizon drilling rig and subsequent oil spill." Premarket: BP +1% (7:00 ET). (See also: BP bills
