Is China About To Make A Higher Bid To Poach Potash?
Chinese state owned chemical company Sinochem may be about to come in with a bid for Potash, sneaking away with the company, according to the Financial Times. Sinochem has admitted that it will “pay close attention” to BHP Billiton’s bid for Potash. The company also admitted to being keen on potash investments outside of China. Right now, it seems pretty certain that BHP Billiton’s bid for Potash is going to have to go much higher to secure the company. On Wednesday, BHP bid $130 per share in a hostile takeover offer. Morgan Stanley thinks the bid for Potash could be headed to $180 per share, as BHP has high valuations of where potash prices are headed. BHP may be better off looking elsewhere if the price rises, as the company previously made an error buying into the potash market too high.
