In what is an increasingly bizarre reaction to the bid by BHP Billiton (NYSE:BHP) for Potash Corp. (NYSE:POT), another alleged bidder has reportedly left the field, with Sinochem from China reportedly dropping out of the race, according to a Reuters' report.
Canadian Federal Industry Minister Tony Clement has confirmed that, saying “There’s rumors of bidders, but no one has formally” made another bid on the company.
One interesting aspect of the Sinochem circumstance is they evidently dropped out of the running five or six weeks ago, suggesting the ongoing rumors were probably plants by Potash.
It also makes you wonder if the alleged interest of Temasek, the sovereign wealth fund of Singapore, and Canadian pension funds, are really interested at all, or have even made overtures in that direction.
Making a phone call to these entities by Potash doesn't mean they have an interest at all.
The bid by BHP of just under $40 billion is under review under the Investment Canada Act, with a new deadline of November 3.
Other than the noise from Potash and Saskatchewan politicians, most of those commenting on the bid don't think there is much to keep it from going forward.
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