Canada PotashCorp disputes LBO speculation

24 April 2007 18:42  [Source: ICIS news]

TORONTO (ICIS news)--Canada’s Potash Corporation of Saskatchewan (PotashCorp) on Tuesday disputed analysts' speculation the company was a good target for a leveraged buyout (LBO).

 

A PotashCorp spokesman said: “That is pure speculation and has no merit.”

 

He added that PotashCorp was not in any buyout talks with anyone.

 

Canada’s RBC Capital Markets said its analysis showed PotashCorp would make a good LBO candidate.

 

Private equity investors may find the Saskatoon, Saskatchewan-based fertilizer major attractive because of its strong market position and the industry’s entry barriers, the analysts said.

 

Earlier this month, the share price of Methanex, the Vancouver-based international methanol major, soared, partly driven by takeover speculation.

 

Canada has seen a number of large corporate takeovers by foreign firms in past months, with some analysts citing recent corporate tax changes as one possible trigger.

 

The share price of PotashCorp was almost unchanged in early Tuesday afternoon trading in New York and Toronto.

 

The stock was priced at $184.87/share in New York, up 0.10%, and C$207.62/share in Toronto, up 0.36%.

 

($1 = €0.74; $1 = C1.12)

By: Stefan Baumgarten
+1 713 525 2653

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