02 November 2010 22:24 [Source: ICIS news]
HOUSTON (ICIS)--PotashCorp’s defence tactics against BHP Billiton’s $39bn (€28bn) takeover bid should be blocked by Canadian regulators because PotashCorp has had enough time to find alternative bids, the Australia-based miner said on Tuesday.
“Without concrete evidence showing the status of its search for alternatives, the commission should discount PotashCorp’s claims that prospective suitors need more time,” BHP wrote in the filing.
PotashCorp said it has conducted talks with 15 potential investors or buyers, adding that potential counter bidders needed more time to arrange funding.
The SFSC was scheduled to hear BHP’s application for a “cease trade order” on PotashCorp’s plan on 8 November, assuming the Canadian government allows the bid to proceed.
BHP has said PotashCorp's shareholder rights plan would dilute shareholder ownership positions in the event it acquired 20% or more of the outstanding shares of PotashCorp stock, according to SFSC documents.
Under the plan, if 20% or more of the shares are acquired by BHP, shareholders could buy additional shares at half price.
The Canadian government was expected on Wednesday to rule on whether to allow the takeover of PotashCorp, the world's largest fertilizer company, by a foreign-based firm.
Additional reporting by Frank Zaworski
($1 = €0.72)
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