21 October 2010 23:19 [Source: ICIS news]
(adds PotashCorp statements in paragraphs 9-11)
HOUSTON (ICIS)--The government of ?xml:namespace>
Speaking in the provincial capital of
"It was a tough decision, but [the takeover] would not be good for jobs and government revenues, so we must say no,” Wall said.
Wall said the government evaluated the takeover bid and determined that it failed the "net benefit" test in three key areas: jobs and investment; Canadian control of an important Canadian resource, and provincial revenues.
"BHP Billiton's public statements about Canpotex and about operating at full production create serious concern about the future of Canpotex," Wall said.
"This in turn puts $6bn worth of capital expansion and thousands of jobs at risk," he said.
"The people of
PotashCorp issued a statement thanking the province “for its thorough and thoughtful review of this matter”.
Noting that its board of directors recommended that shareholders reject BHP’s bid, the company said it had more than 2,400 employees in
“Our corporate name says it all. We are Potash Corporation of
Wall also said a BHP Billiton takeover would mean a significant loss in provincial revenues that were needed to fund roads, schools and hospitals.
Additionally, Wall expressed concerns about the ability of federal authorities to enforce an agreement with BHP.
"In the past decade, promises about maintaining jobs, corporate headquarters and future investment have all been broken," Wall said. "We simply cannot take that risk with this valuable resource that belongs to the people of
BHP allegedly offered
BHP offered on Wednesday commitments to
Shares of PotashCorp traded at $143.09, up 66 cents, at 16:54 hours
Additional reporting by Stefan Baumgarten and Brian Ford
($1 = €0.72, $1 = C$1.03)
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