Potash bid 'disciplined'
By Sonali Paul and Eric Onstad |
August 26, 2010, Thursday
|
Print Edition
Print Edition
BHP Billiton, the world's biggest miner, tried to dampen expectations it would substantially raise its hostile US$39 billion bid for Potash Corp after bumper results.
"I will be as disciplined on this bid as I've been on every other endeavor," Chief Executive Marius Kloppers said yesterday. "The shareholders own the company and it's my job to create more value for them, not to do any one thing at any cost."
BHP posted its best half-year profit in two years and a hefty balance sheet confirmed the miner has the financial muscle to raise its US$130-per-share offer for the top global fertilizer maker, with net annual cash flows of US$17.9 billion.
Net debt for the group, which has already lined up US$45 billion in loans for the Potash deal, dropped 58 percent from the end of last year to US$3.3 billion.
"BHP could probably go up to close to A$200 dollars (US$177) a share (in its Potash Corp bid)," said Ric Ronge, portfolio manager at Pengana Capital in Australia.
Potash Corp investors polled by Reuters said they would be willing to accept an offer around US$162 a share, while many analysts think an offer around US$157 would clinch a deal.
"I will be as disciplined on this bid as I've been on every other endeavor," Chief Executive Marius Kloppers said yesterday. "The shareholders own the company and it's my job to create more value for them, not to do any one thing at any cost."
BHP posted its best half-year profit in two years and a hefty balance sheet confirmed the miner has the financial muscle to raise its US$130-per-share offer for the top global fertilizer maker, with net annual cash flows of US$17.9 billion.
Net debt for the group, which has already lined up US$45 billion in loans for the Potash deal, dropped 58 percent from the end of last year to US$3.3 billion.
"BHP could probably go up to close to A$200 dollars (US$177) a share (in its Potash Corp bid)," said Ric Ronge, portfolio manager at Pengana Capital in Australia.
Potash Corp investors polled by Reuters said they would be willing to accept an offer around US$162 a share, while many analysts think an offer around US$157 would clinch a deal.
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