Potash Corp. of Saskatchewan

Potash Sinks After Canada Rejects BHP Billiton Bid

Shares of Potash Corp. of Saskatchewan were down in morning trading Thursday after Canada provisionally blocked BHP Billiton's bid to buy the company, and it appears unlikely that the government, focused on protecting national assets and natural resources, will change its mind later.

Canada Rejects Takeover Bid for Potash

In a surprise decision by a government that has historically favored foreign investment, Canada has rejected a $38.6 billion foreign takeover bid for Saskatchewan-based Potash Corp.

Sinochem Finds Little Govt. Support for Potash Bid

Sinochem Group may be unable to bid for Potash Corp. (POT), as the Chinese company is struggling to get state backing for the move. The Chinese government has said it would prefer that the bid not be financed by credit from state banks, Bloomberg News reported without naming its sources.

Sinochem Approaches Temasek Regarding Possible Potash Bid

China%u2019s Sinochem Corp. invited Temasek, Singapore%u2019s sovereign wealth fund, to join a consortium that may bid for Potash Corp. (POT), Reuters reported. Temasek has not made any decision on whether to join the consortium, Reuters reported without naming its sources. It is not clear if the consortium plans to bid for Potash Corp or to buy a stake large enough to block BHP Billiton%u2019s (BHP) planned takeover.

A Major Game-Changer for Potash Corp.

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 Had Contact With Brazil's Vale, China's Sinochem

Potash Corp. (POT) had contact with China%u2019s Sinochem Group and Brazil%u2019s Vale (VALE) as the Canadian company looks for alternatives to a hostile takeover bid from BHP Billiton Ltd (BHP). Vale and Sinochem both made contact late last week, Bloomberg News reported without naming its sources. Neither company has held formal talks with the world%u2019s biggest fertilizer company.

Chinese Companies May Bid for Potash

Chinese companies may bid for Potash Corp, (POT) as the country%u2019s growing food needs make access to fertilizer increasingly urgent. Companies including Sinofert, Chalco and ChemChina are all potential bidders for the Canadian company, Reuters reported without naming its sources.