https://global.handelsblatt.com/edition/258/ressort/companies-markets/article/sources-potash-willing-to-go-hostile
PotashCorp is considering a hostile takeover of German rival K+S, the largest potash producer in Western Europe, which has repeatedly rejected a merger offer from its Canadian rival, Handelsblatt has learned.
PotashCorp in June revealed a planned takeover, at the time worth €7.9 billion, or $8.8 billion. After months of resistance, the Canadian firm, which is led by German chief executive Jochen Tilk, may make a hostile bid if needed, Handelsblatt has learned from financial sources in Montreal, Canada.
Potash management has discussed this possibility with brokers in Canada, the people familiar with the matter told Handelsblatt. A Potash spokesperson also did not rule out the option of a hostile takeover when contacted by Handelsblatt.
Potash’s offer has bid around €41 per K+S share, which has said the bid is too low. K+S shares jumped above €38 in early July, but have fallen back since, trading at €34.27 on Tuesday, 16:32 Central European Time in Frankfurt.
The German state of Hesse, where K+S is based in the city of Kassel, has opposed the takeover due to concerns over job losses.
Managers of Potash and the state of Hesse have met in Hesse’s capital Wiesbaden, a spokesperson of the state’s premier, Volker Bouffier, told Handelsblatt. The spokesman declined to give details.
According to Potash, the Canadian firm discussed guarantees on locations and jobs with the state of Hesse.