Potash claims rivals will bid

City A.M. Reporter
FERTILISER company Potash Corp is not considering a large stake sale to a third party or long-term production sharing agreements as serious options to block a sale to BHP Billiton, investors who met with the company said yesterday.

Potash Corp chief financial officer Wayne Brownlee was in New York meeting with investors on Monday and yesterday ahead of a presentation at a conference this morning, the investors said.

The investors spoke on the condition of anonymity. They said Brownlee also echoed previous company statements on the strong fundamentals and prospects of the business.

Investors said he reiterated earlier Potash Corp statements that the company has been in talks with third parties about alternative transactions to the BHP bid.

Last month, BHP launched a $39bn (£25bn) hostile bid for Potash Corp as the Anglo-Australian miner looks to become the world’s largest fertiliser company.

However, Potash has resisted the offer, with chief executive Bill Doyle writing to staff on Monday to claim the firm is ready for a “marathon, not a sprint” when it comes to other bids.

Potash declined to comment.