BHP says Potash Lawsuit “Without Merit”

22 September 2010 (Last Updated September 22nd, 2010 18:30)

BHP says Potash Cor'’s lawsuit against its hostile takeover bid is "without merit", according to the miner. The lawsuit alleges BHP misrepresented and failed to inform investors of material facts about the $39bn offer. The lawsuit also accuses BHP of engaging in fraudulent, dece

BHP says Potash Cor'’s lawsuit against its hostile takeover bid is "without merit", according to the miner.

The lawsuit alleges BHP misrepresented and failed to inform investors of material facts about the $39bn offer.

The lawsuit also accuses BHP of engaging in fraudulent, deceptive and manipulative behaviour related to its offer.

BHP, however, said the lawsuit is entirely without merit and will not delay the takeover process.

Canadian Prime Minister Stephen Harper said the government could block a takeover if it does not bring a net benefit to Canada.

Potash Corp has asked the court to resolve the litigation before the 18 November deadline on BHP's bid.

Earlier Potash Corp rejected a $39bn hostile bid from BHP Billiton, calling it inadequate.

India and China are the biggest importers of potash, which is used for fertiliser production.