BHP Billiton (NYSE:BHP) CEO Marius Kloppers said he wouldn't increase the offer for Potash Corp. (NYSE:POT) to a place where it would provide good value for the shareholders of BHP (NYSE:BHP).
At the same time, Kloppers reiterated he isn't concerned about the rumor of a rival bid for Potash, as his is the only offer on the table.
Rather said Kloppers, he's focusing on navigating his way through regulatory hurdles and seeking political support in Canada.
He also reiterated that he wouldn't hesitate to walk away from the process if rival bids do emerge and they become too high.
"If somebody offers a price at which we cannot demonstrate value for
our shareholders, we're probably not going to show, and I think that
continues to be the case," Kloppers said.
Concerning what is considered one of the largest stumbling blocks, the eventual leaving of Canpotex, which is basically a price-fixing cartel, although also a marketing arm of Potash, Mosaic (NYSE:MOS) and Agrium (NYSE:AGU), Kloppers said market-based pricing would ultimately generate more revenue than the price-fixing of the cartel.
In other words, margins aren't everything, and the increased amount of sales from market prices would surpass the higher prices set by Canpotex, in Kloppers' view.
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