Thursday, October 28, 2010

"Potash profit soars, raising bar for BHP bid" (POT)

From MarketWatch:

Potash Corp. of Saskatchewan said Thursday its third-quarter results were the second-best ever for the company, news that raises the stakes for Anglo-Australian miner BHP Billiton, whose unsolicited bid for the giant fertilizer producer faces a deadline next week
The Canadian fertilizing giant reported quarterly earnings of $402.7 million, or $1.32 a share, from $247.9 million, or 82 cents a share, in the same quarter last year.

Revenue for the Saskatoon-based company climbed 43% to $1.6 billion.
The strong earnings report raises the bar for BHP’s (BHP 82.84, +2.12, +2.63%)  proposed $130-a-share takeover offer, which the Saskatchewan government flatly rejected last week.
The province said the $38.6-billion valued bid was “grossly inadequate,” citing C$3 billion in revenue losses over 10 years for the region if the takeover succeeds.

“That revenue is also needed to keep our tax levels competitive for other businesses and for Saskatchewan families,” Premier Brad Wall said last week.

The bidding war, which began more than two months ago, nears an end next Wednesday, when the Canadian government must make a decision on the takeover....MORE