Potash Corp sues BHP Billiton over misleading $38.6-billion takeover offer
22 Sep 2010
Potash Corporation of Saskatchewan (PotashCorp), the world's largest fertiliser producer, has sued its suitor BHP Billiton in a US federal court in order to block the world's largest miner from going ahead with its $38.6-billion hostile takeover bid.
In an unprecedented and surprise move, Canada's PotashCorp yesterday filed a suit in the US District Court for the Northern District of Illinois alleging that the $130-a-share takeover offer made by BHP last month is built on ''false and misleading'' statements including its post acquisition plans for PotashCorp should its hostile takeover succeed.
In its 45-page complaint, PotashCorp said that BHP should be stopped from proceeding with its proposed acquisition since the Anglo Australian miner had based its proposal on ''false statements,'' ''half truths,'' ''contradictions'' and ''omissions'' and thereby violated federal securities laws.
On 17 August, Potash Corp rejected a $38.6-billion in cash takeover offer from BHP on the grounds that the Melbourne-based BHP was trying to exploit the current downturn in the market for potash and is attempting to acquire their company for significantly less than its intrinsic value. (See: Canada's Potash Corp rejects BHP Billiton's $38.6 -bn cash takeover bid)