Howard Wheeldon Comments: BHOP Billiton Launches Hostile Bid For Potash - BBC News Online
Mining giant BHP Billiton has launched a $40bn (£25.8bn) hostile takeover bid of Canadian firm Potash Corp after having had an initial offer rejected. On Tuesday, Potash, the world's largest fertiliser producer snubbed BHP's offer, saying it undervalued the firm.
BHP has offered to buy Potash for $130 per share.
Howard Wheeldon, senior strategist at BGC Partners, pointed to a surge in Potash's share price on Tuesday as a sign that BHP would "probably need to pay a significantly higher price".
"Having pushed the shares up by a heady 28% yesterday to $143 per share, markets were in fact confirming that if Potash is to eventually fall to the Australian bidder it will do so only on the basis of a considerably higher premium to the $130 per share indicative offer."