BHP Billiton Ltd’s
(ASX:BHP) takeover target, Potash Corp, has lashed out at findings in a report on BHP’s US$40 billion hostile bid for the fertilizer giant.
The Conference Board of Canada released a report detailing the impact BHP’s acquisition of Potash Corp would have, addressing the pro’s and con’s.
The report, commissioned by the Saskatchewan Government, found that revenue loss to the Saskatchewan province would be around $2 billion Canadian dollars over 10 years and have little or no effect on employment in the industry.
The Conference Board also concluded that at takeover by BHP would be better than one by a Chinese company. Reports are that China’s Sinochem is mounting a rival bid for Potash Corp.
Potash has hit back at findings in the report saying the revenue loss reported is understated, as the report chose not to assume that BHP would not operate the potash assets at full capacity, even though BHP has said otherwise in statements made.
Potash Corp has encouraged the Government of Saskatchewan to continue to remain open to alternative bids.
BHP earned $15.26 billion for the 2010 financial year.
