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.
Showing posts with label Temasek. Show all posts
Showing posts with label Temasek. Show all posts
Friday, October 15, 2010
Friday, September 17, 2010
Sinochem Back in Play with BHP (NYSE:BHP), Potash (NYSE:POT)?
Reports in Canadian and Chinese news outlets alleged Sinochem is back in play in the ongoing attempt to outbid BHP Billiton (NYSE:BHP) in their quest to acquire Potash (NYSE:POT).
This comes just a short couple of days after Sinochem had denied they wanted to pursue Potash.
Now it seems they've approached interests in Britain and others in hopes of generating interest in financing a bid for a consortium of buyers they're attempting to put together.
We reported earlier this week that Sinochem had approached Temasek Holdings of Singapore in hopes of convincing them to join their cause, and nothing has yet reportedly come of that.
This comes just a short couple of days after Sinochem had denied they wanted to pursue Potash.
Now it seems they've approached interests in Britain and others in hopes of generating interest in financing a bid for a consortium of buyers they're attempting to put together.
We reported earlier this week that Sinochem had approached Temasek Holdings of Singapore in hopes of convincing them to join their cause, and nothing has yet reportedly come of that.
Wednesday, September 8, 2010
China Circling Potash (NYSE:POT) Bait
In one of the first open moves revealing their interest in Potash Corp. (NYSE:POT), China's state-owned Sinochem Corp. has requested Temasek, the sovereign wealth fund of Singapore, to become part of a consortium to make a competitive bid against the BHP Billiton (NYSE:BHP) bid of about $39 billion.
Chinese leaders had ordered the state companies to get involved with the process recently, seeking for ways to overcome the BHP acquisition of Potash.
China has little in the way of potash and other fertilizers, and would be vulnerable to increased pricing based on the known demand in the country.
They're still quietly fuming about the iron ore pricing they were forced to accept in order to meet the demand of their domestic steel market.
The China story has changed over the last week, as originally few thought Canada or Saskatchewan would allow a Chinese company, especially a state-owned one, acquire the fertilizer giant.
That has recently changed with Canada changing its tone.
Of course China is probably inviting other countries and/or companies to join their effort to dilute their share in the company in order to make officials feel more comfortable about doing a deal with them.
Unnamed sources say Temasek, which has $134 billion in assets under management, hasn't made a decision yet on the proposal from Sinochem.
Although there is no clarity on whether a bid would be to acquire the company or to buy a stake to block the sale, more than likely it would be an attempt to buy the entirety of Potash and not only a strategy to block the sale.
Chinese leaders had ordered the state companies to get involved with the process recently, seeking for ways to overcome the BHP acquisition of Potash.
China has little in the way of potash and other fertilizers, and would be vulnerable to increased pricing based on the known demand in the country.
They're still quietly fuming about the iron ore pricing they were forced to accept in order to meet the demand of their domestic steel market.
The China story has changed over the last week, as originally few thought Canada or Saskatchewan would allow a Chinese company, especially a state-owned one, acquire the fertilizer giant.
That has recently changed with Canada changing its tone.
Of course China is probably inviting other countries and/or companies to join their effort to dilute their share in the company in order to make officials feel more comfortable about doing a deal with them.
Unnamed sources say Temasek, which has $134 billion in assets under management, hasn't made a decision yet on the proposal from Sinochem.
Although there is no clarity on whether a bid would be to acquire the company or to buy a stake to block the sale, more than likely it would be an attempt to buy the entirety of Potash and not only a strategy to block the sale.
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