K+S board offered incentives to come to negotiating table - FAZ
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Potash, the Canadian potash group, has offered incentives to the board of German potash group K+S to come to the negotiating table, Frankfurter Allgemeine reported. The German daily said it had learned from Uwe Rathausky, Chief of Universal-Investment fund advisors Gané, that following consultation with institutional investors Potash sent the K+S management a list of concessions it is prepared to make. Potash would allow the K+S board members to keep their jobs and enjoy a pay raise. K+S would also gain two seats on the Potash executive committee, the report continued. Potash has also offered to establish an "Excellence Center" in Germany, and would also permit K+S keeping its current legal form for a period of five years.
Other incentives include the continuation of training programs and retaining Kassel as K+S's headquarters for five years, the report stated.
The German daily calculated the K+S board would be entitled to compensation amounting to EUR 13.4m in the event of a takeover.
Rathausky's information was confirmed by other sources who wished to remain anonymous. Both Potash and K+S declined to comment.
The Universal-Investment fund holds 0.4% in K+S and has urged K+S to meet the Potash management, the report stated.