K+S Chief Defends Management in Potash Bid, Rejects Environmental Crime Allegations
Norbert Steiner, head of German potash producer K+S, said that last year’s failed takeover attempt by Canadian competitor PotashCorp was not thwarted by K+S management.
“We carefully assessed the proposal and rejected it. But we have always said that we won’t block a takeover,” Mr. Steiner told Handelsblatt about Potash’s bid. In the end, it was the Canadian firm that backed out because of worsening market conditions, he argued.
Ahead of next week’s annual general meeting, Mr. Steiner called media reports accusing his company of criminal offenses in a case of alleged illegal potash brine dumping in Germany “simply obscene.” He maintained that K+S was legally authorized to pump potash lye underground.
Mr. Steiner also criticized financial analysts, who have taken a pessimistic view of the company. After the failed takeover, K+S’s share price dropped to a low of €18 and has since been stuck at around €21.
Mr. Steiner argued that analysts are not taking into account a new potash mine worth €3 billion ($3.47 billion) in Canada that K+S will open this year. K+S will be “spot-on in terms of schedule and budget” on the project, added the chief executive