Potash (POT) takeover by BHP Billiton (BHP) has been quashed by Tony Clements Canada’s Industry Minister and Steve Harper Federal Prime Minister. The move is a surprise but some say reflects local political realities. Investors who were promised a better takeover offer which now seems to be a non event are about to lose billions of dollars of valuation.
BHP you have 30 days to improve the net benefits. stop thinking like business men and start thinking like politicians. This has become a political decision. The next question is who will shareholders sue. The premium will evaporate. why should investors be penalized.
Lawyers start your engines.
Disclosure: George Gutowski writes from a caveat emptor perspective. I do not hold any positions in stocks mentioned in this post.
- Ottawa rejects BHP’s Potash takeover (financialpost.com)
- Canada says no to BHP Billiton (ftalphaville.ft.com)
- Canada blocks Potash Corp takeover (seattletimes.nwsource.com)
- “Canada blocks Potash Corp takeover” and related posts (dailycaller.com)
- Tory Potash politics slam Canada’s door shut to investors (fullcomment.nationalpost.com)
- Potash and the misbegotten fear of recolonization (theglobeandmail.com)
- Canada blocks Potash Corp takeover (sfgate.com)