PotashCorp Sticks to EU$7.9 Billion in Third Takeover Bid for K+S

CTV News reported that PotashCorp’s (TSX:POT,NYSE:POT) third takeover attempt has been rejected from Germany’s K+S (FWB:SDF1). The North American producer stuck to its original proposal of EU$7.9 billion or EU$41 per share.
As quoted in the market news:

K+S AG said Friday on its website that PotashCorp sent an unsolicited letter which included a business combination agreement to address the interests of workers and local communities. But it said the offer of 41 euro per share, the same price as before, was still too low.
“We are still convinced that the proposed price of 41 euro per share does not at all reflect the fundamental value of K+S,” Norbert Steiner, CEO of K+S, said in a statement.
“This is true for our existing business but in particular for the value contribution of our Legacy project,” he added, referring to the company’s potash development in southern Saskatchewan that is expected to begin production in mid-2016. K+S AG did not elaborate on the details of the business combination agreement, but said it “offers no reliability.”
“They are foiled by far-reaching restrictions in essential parts and are not effectively enforceable,” the company said.
K+S has expressed concerns about job losses and mine closures if PotashCorp takes over the company. PotashCorp confirmed it sent a letter and draft business combination agreement to K+S but would not discuss what was proposed.
The proposed takeover offer valued K+S at about 7.85 billion euros or about C$10.9 billion when it was first confirmed on June 25. But since then, the bid has grown to C$11.3 billion because of the falling Canadian dollar.

Click here to read the full CTV News report.