K+S Takeover

Higher Potash Bid Expected

K+S heap dpa
Try again, PotashCorp. There's more in this heap than you assumed.
  • Why it matters

    Why it matters

    Shares of fertilizer and salt firm K+S could rise further if rival PotashCorp were to increase its $8.8 billion takeover bid.

  • Facts

    Facts

    • K+S chief executive Norbert Steiner believes PotashCorp’s offer of €41 per share is too low.
    • There are also concerns over jobs, as Potash has so far failed to make any firm commitments to protect employees of K+S, the company says.
    • K+S shares traded at €29.05 before the takeover plans became known, and stood at €38.80 on Friday morning.
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    Audio

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PotashCorp, one of the world’s largest producer of the fertilizer potash based in Canada, kept faith in its takeover K+S after the German rival rejected its €7.9 or $8.8 billion offer.

“PotashCorp (is) confident K+S’ concerns can be addressed through collaborative discussion,” the Canadian firm said in a statement on Thursday.

Hours earlier, the Kassel-based fertilizer and salt producer K+S had rejected the offer as too low.

“Jointly with the Supervisory Board we have come to the conclusion that the proposed price of €41 per share does not adequately reflect the fundamental value of K+S,” Norbert Steiner, K+S’ chief executive said in a statement.

K+S, which is worried about job losses in Germany or abroad after an acquisition, called the offer “unsolicited”, corporate speak for a hostile takeover.

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