BHP Billiton targets Potash Corp with hostile 40-bln-dlr bid

LONDON, Aug 18, 2010 (AFP) - - Anglo-Australian mining giant BHP Billiton on Wednesday launched a mammoth hostile takeover bid for Canada's Potash Corp which values the world's largest fertiliser producer at 40 billion dollars.
"Potash Corp will provide BHP Billiton with an immediate leadership platform in the global fertiliser industry and further diversify BHP Billiton's portfolio," BHP said in a statement unveiling the news, one day after Potash had rejected an unsolicited approach.
The offer, worth the equivalent of 31 billion euros, would allow the energy and metals giant to expand in the agricultural sector amid soaring wheat prices and keen food demand to meet the needs of the world's rising population.
Potash is a fertiliser that is widely used in farming to replenish nutrients in soils and increase crop yields.
The cash offer was pitched at 130 dollars per Potash share -- the same level as BHP's earlier informal bid that Potash has already slammed as "grossly inadequate" on Tuesday.
BHP chairman Jac Nasser said Wednesday that his company had decided to put its offer directly to Potash investors.
"We firmly believe that Potash Corp shareholders will find the certainty of a cash offer, at a premium of 32 percent to the 30-trading day period average, very attractive and we have therefore decided to make this offer directly to those shareholders," Nasser said.
BHP Billiton is the world's biggest miner...

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