DBRS: Potash Corp., BHP under developing review

DBRS said it has placed the BBB (high) senior unsecured debt rating and the R-1 (low) commercial paper rating of Potash Corp. of Saskatchewan Inc. under review with developing implications following the company's announcement that it has received an unsolicited proposal from BHP Billiton Ltd. (AA (low)) to acquire Potash for cash at a price of $130 per share, or about $38.5 billion.

Potash's board of directors has unanimously rejected the proposal and the company has adopted a shareholder rights plan, subject to Toronto Stock Exchange acceptance, the agency said.

BHP Billiton, which was also placed under developing review, has confirmed that it has approached Potash regarding a possible acquisition of Potash, DBRS said, noting that it views that BHP Billiton has the financial resources to pursue the acquisition and that Potash's fertilizer businesses fit within BHP Billiton's business profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.