K+S shares up as Potash Corp deal seen as more likely POT.TO SDFGn.DE - RTRS
31-JUL-2015 11:53:00
Shares in German potash miner K+S SDFGn.DE gain 2.6 percent on Friday for the best DAX .GDAXI performance after remarks by Canada's Potash Corp POT.TO spur market expectation tha a takeover deal is more likely.
Potash Corp, having proposed a 41 euro-per-share deal, says it remains focused on acquiring K+S and is prepared to make "binding commitments" to preserve jobs but the German group replies it still sees no basis for talks. (Full Story)
A new offer might come after K+S reports Q2 results on Aug. 13, says Baader Bank analyst Markus Mayer. "We think a new offer price between 45-50 euros is likely."
"After Potash Corp's remarks yesterday, people are increasingly confident that they won't let up on K+S and that there could be a deal after all," says one trader.
K+S shares have risen 26 percent since Potash proposed the takeover on June
25.