Friday, August 20, 2010

China May Bid on Potash (NYSE:POT) Says JPMorgan (NYSE:JPM)

JPMorgan's (NYSE:JPM) Ian Henderson, who manages about $7 billion in resource assets for the financial institution, says there's a strong possibility China may make a bid for Potash Corp. of Saskatchewan Inc. (NYSE:POT), now that BHP Billiton (NYSE:BHP) has revealed it's interested in acquiring the fertilizer giant.

Henderson noted in a Bloomberg Television interview, that China and Brazil may be interested, but China is “dependent upon potash exports so they are a big customer of Potash Corp.," while “Brazil does have its own potash reserves and these can be developed and I think Vale is increasing their own production plans already.”

From China the most likely companies to make a bid include the sovereign wealth fund, China Investment Corp.; Sinochem Group; or Sinofert Holdings.

Included in the resources Henderson manages are mining stocks such as BHP Billiton and Vale SA ((NYSE:VALE), a Brazilian natural resources company.

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