Potash and BHP Billiton - Is This The Start Of The Next Leg Up?

The ag sector has been roiling ever since Potash (NYSE: POT) went public to scorn an unsolicited bid from global resources giant BHP Billiton (NYSE: BHP). The deal would have given Potash shareholders $130 per share in cash for their stakes in this leading fertilizer company, and it would have cost nearly $40 billion for the would-be Australian acquirer. 

This battle is not over by a long shot, and it is fair to wonder whether this move really does confirm the next big move in the ag sector.

They Doth Protest Too Much
Of course, it was not enough for Potash to simply reject BHP politely and discreetly. Oh no - Potash management felt the need to fire off a broadside full of the sort of hyperbole that long-term investors have probably come to expect in these deals. Potash management essentially called the bid opportunistic and said that it failed to appreciate the company's "dynamic growth prospects". Given that Potash is a commodity company and prone to extreme cyclicality, that calls into question just precisely how the CEO defines "dynamic growth prospects". 


To read the full piece, please continue on to:
http://stocks.investopedia.com/stock-analysis/2010/Potash-And-BHP-Billiton---Is-This-The-Start-Of-The-Next-Leg-Up-POT-BHP-CF-MOS-AGU-VALE0819.aspx