Fertilizer producer Potash Corp. of Saskatchewan (POT) on Tuesday rejected an unsolicited $38.6 billion takeover offer from Anglo-Australian mining king BHP Billiton (BHP). BHP's offer came in at around $130 per share, or a 16% premium to the stock's closing price from Monday.
As good as that offer might look to any shareholder who was long the stock prior to the bid, the company made it abundantly clear that the offer was inadequate.
Potash Chairman Dallas J. Howe said in a statement that the BHP offer substantially undervalues the company. "We believe the timing of your proposal is highly opportunistic given that, among other things, the industry is still in the early stages of a recovery," he said.
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