Great news- Canada’s Ontario Teachers’ Pension P...

Great news- Canada’s Ontario Teachers’ Pension Plan considering PotashCorp bid

Canada’s Ontario Teachers’ Pension Plan, which controls a $96.34bn portfolio, is plotting a bid to spoil BHP Billiton’s (BHP) (BLT.L: Quote) $40 billion hostile takeover offer for Potash Corp (POT), the worlds top fertilizer maker. London-based BHP launched a 40 billion US dollars (£25 billion) bid for Canada’s PotashCorp in August this year.

Discussions are at an early stage, but the paper says the two funds are considering an outright takeover or buying a minority stake at an higher price than BHP’s $US130 a share bid to torpedo the Australian-based company’s deal. Potash Corp has rejected BHP’s $130-a-share bid. Sinochem , the state-owned Chinese chemical group, is also viewed as likely to lead a competing group.

Potash shares have been trading well above the $US130 a share bid price — they closed at $US145.80 on Friday, as a result of BHP chief executive Marius Kloppers’ ambition to seize the producer of a fifth of the world’s potassium fertiliser.

BHP Billiton seeks an instant 20 per cent share of the global potash market through a takeover of Potash Corp rather than wait for Jansen — Saskatchewan’s first new potash mine in 40 years — to hit full production capacity in 2021.

BHP, which employs 41,000 people and has operations in 25 countries, made its 130 US dollars-a-share (£81.40) offer direct to shareholders after directors of PotashCorp dismissed an initial approach as being “wholly inadequate”.

Megan Batchelor

Megan BatchelorVerified account

Executive features editor at CEOWORLD Magazine
Executive features editor at The CEOWORLD magazine and lover of reality TV.I eat cereal for breakfast, lunch and dinner.
Megan Batchelor

Leave a Reply


This column does not necessarily reflect the opinion of the editorial board or CEOWORLD magazine, and its owners. To contact the author of this story:  info@ceoworld.biz
coinmag

Executive features editor at The CEOWORLD magazine and lover of reality TV. I eat cereal for breakfast, lunch and dinner.