Shares of Potash Corp. were down Thursday after Canada blocked BHP Billiton's bid to buy the company, and it appears unlikely that the government, focused on protecting national assets, will change its mind.
In a surprise decision by a government that has historically favored foreign investment, Canada has rejected a foreign takeover bid for Saskatchewan-based Potash Corp. Australian mining company BHP Billiton had offered $38.6 billion in what would have been the world's largest corporate acquisition this year.
After rejecting a $38 billion offer from BHP Billiton, Potash Corp. is now very much in play. Investors have good reason to think that the stock price could be headed much higher in the coming weeks.
Potash Corp. of Saskatchewan Inc. said Monday that its board voted unanimously to reject BHP Billiton's hostile $38.5 billion takeover offer as it doesn't reflect the strong growth the company believes it is poised to enjoy.
BHP Billiton isn't going down without a fight. A day after fertilizer giant Potash rejected its takeover offer, the giant mining company has taken its $40 billion bid directly to Potash shareholders.
