04 November 2010 17:14 [Source: ICIS news]
The ruling by
Canadian analysts said the government’s decision seemed to be politically driven to help Prime Minister Stephen Harper’s Conservative minority government retain support in
“I don’t think it looks good on
“You had a bona fide bid. The
Analysts noted that the government had not completely rejected the deal as it granted BHP a 30-day appeal period to come back with a revised proposal.
But Mark Lackey, an analyst at Toronto-based financial services firm Pope & Company, said BHP should look elsewhere for an acquisition opportunity. He suggested US-based Mosaic or a smaller Canadian potash firm as targets for BHP.
“The Conservatives have drawn a line in the sand, and I don’t think this 30-day window is going to mean all that much,” Lackey said.
“When a conservative government steps in and stops you, that has to tell you something; clearly there is a lot of opposition to this deal politically,” he added.
Lackey’s view contrasted with that of
Lackey noted that
In the last G20 meeting in
Following the PotashCorp ruling, the government will now be under pressure to allow the next major foreign takeover deal in order to regain foreign investor confidence, he added.
In a front-page editorial on Thursday, the newspaper called on the government to “tell the world where the goalposts now stand when it comes to investing in
“Or is this [PotashCorp ruling] simply about the Conservatives seeking to save 13 seats in Saskatchewan - a reasonable desire for any ruling party, but one that deserves a little more honesty from those who just confounded the honest shareholders of the country,” the newspaper said.
($1 = €0.71)
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