Felix Salmon pulls together what he likes to call a
report report report on the Conference Board of Canada's
report on various
Potash Corp takeover scenarios, and the media's coverage thereof. The punch line is that
A successful takeover of Saskatoon-based Potash Corp could slash the province’s revenues by at least $2 billion over the next decade while having little or no net effect on employment, according to a report commissioned by the province.
... but a takeover by Sinochem would be far worse, with potentially foregone tax revenues of more than $10 billion over the next ten years.
Potash Corp's CEO has been doing a
lot of talking, but I find it impossible to believe that a Sinochem bid could ever be politically feasible, so unless another multi-national bidder emerges, he won't be independent for much longer. That said, the market is still trading higher than BHP's $130/share offer price so a critical mass of people does seem to believe someone else - or another higher bid from BHP - is still out there.
Potash Corp's CEO has been doing a lot of talking, but I find it impossible to believe that a Sinochem bid could ever be politically feasible, so unless another multi-national bidder emerges, he won't be independent for much longer. That said, the market is still trading higher than BHP's $130/share offer price so a critical mass of people does seem to believe someone else - or another higher bid from BHP - is still out there.
No comments:
Post a Comment