Potash Corp. (NYSE:POT) chief executive officer Bill Doyle said in an interview with Canadian media outlet The Globe and Mail, that the value of Potash “far exceeds $170 per share," way above the current offer of $130 a share from BHP Billiton (NYSE:BHP).
The bid by BHP puts a value on Potash of $38.6 billion. Doyle said in the interview that the bid was a "non-starter."
Doyle added, “When you think about this company being sold for $130, $150, $160 or $170 – when you look at the future growth of this company and where we are going with the share price ... This deal has a long way to go.”
Potash has traded as high as about $240 a share. Doyle claims they'll surpass that if they stay independent.
Doyle is basing his assessment on demand for food in the years ahead, where he is probably right, although the time frame could be longer than expected.
In the end, no matter what he thinks, shareholders of the company will make the decision, as it appears regulatory obstacles shouldn't be a problem, although there are still some hurdles to surmount before that becomes a fact.
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