24 Aug 2010

Potash Corp urges shareholders to reject BHP bid

12:04 pm on 24 August 2010

The world's largest fertiliser producer, Potash Corporation, has urged its shareholders to reject a hostile $US40 billion takeover bid from mining company BHP Billiton.

The Canadian firm says there are other, better suitors out there, and reports suggest Chinese fertiliser firm Sinochem may be interested in bidding.

Brazilian mining giant Vale, which was also rumoured to be interested, says reports it is planning a bid are unfounded.

Potash had already branded the bid as grossly inadequate and undervaluing the firm but pledged to look at BHP's official offer documents before making a recommendation to shareholders.

The BHP offer has a deadline of 19 October.