BHP Billiton Makes Hostile $39bn Bid for Potash

17 August 2010 (Last Updated August 17th, 2010 18:30)

BHP Billiton has made a $39bn (£25bn) hostile bid for Potash Corporation, the world's largest fertiliser company, after it rejected an earlier approach. The $130-a-share cash offer is a 20% premium on the closing price of Potash on 11 August, the day before BHP made its proposal to the f

BHP Billiton has made a $39bn (£25bn) hostile bid for Potash Corporation, the world's largest fertiliser company, after it rejected an earlier approach.

The $130-a-share cash offer is a 20% premium on the closing price of Potash on 11 August, the day before BHP made its proposal to the fertiliser group's board.

The London-listed Australian miner has gone direct to shareholders in its attempt to become the leading global miner of potash in anticipation of increased demand.

Around 95% of the world's potash is used in fertilisers, while the rest is used for feed supplements and industrial production.