Reuters — Canada’s PotashCorp does not plan to sweeten its bid for German rival K+S AG, several people familiar with the Canadian mineral miner said, downplaying a media report that it would consider such a move.
The proposed bid of 41 euros (C$58) per share already represented an unusually high premium and should not be taken as a starting point for further increases, the sources said. There was no valid reason to speculate on PotashCorp increasing its offer, they said.
The Globe and Mail on Wednesday reported PotashCorp was confident of winning over shareholders with its current C$11 billion bid, but that it would also be open to raising it slightly under certain conditions.
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“If we sit down and do due diligence and they can demonstrate some incremental value to us, we might have an extra euro for them. I wouldn’t rule that out,” the daily quoted a source close to the matter as saying.
K+S last week rejected PotashCorp’s bid, saying it was too low and that the Canadian suitor could be planning to dismantle the company, putting jobs at risk.
PotashCorp said July 3 it was confident of addressing concerns raised by K+S and it would seek to meet with K+S’s management as soon as possible.
If K+S gave PotashCorp access to its books and the Saskatoon-based company found more value, it could raise the bid, the newspaper reported.
A K+S spokesman said that if PotashCorp were to send them a new proposal they would be obligated to check it. The company has previously ruled out opening its books to the suitor under the proposed terms.
PotashCorp’s Germany-based spokesman declined to comment.
— Reporting for Reuters by Patricia Weiss and Arno Schuetze in Frankfurt, Greg Roumeliotis in New York and Supriya Kurane in Bangalore.
