CANADA STOCKS-TSX set to open higher on Potash Corp bid

Tue Aug 17, 2010 9:06am EDT
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Aug 17 (Reuters) - Toronto's main stock index was set to open higher on Tuesday, boosted by an unsolicited $38.6 billion bid for Potash Corp of Saskatchewan POT.TO, one of the largest and highest profile resource companies listed on the exchange.

Potash Corp said its board rejected the blockbuster bid from BHP Billiton's (BHP.AX: Quote) (BLT.L: Quote), terming it as "grossly inadequate." [ID:nSGE67G0DT]

But the offer raised the prospect of a higher bid for the company and other merger and acquisition deals in Canada's resource sector, which should boost stock prices.

Potash Corp shares jumped 30 percent to $145.25 in pre-market trade on the New York Stock Exchange, well above BHP's offer price of $130 a share.


* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures rose on Tuesday after bellwether retailers Wal-Mart (WMT.N: Quote) and Home Depot (HD.N: Quote) posted better-than-expected quarterly profits, but Wal-Mart cautioned about the strength of the U.S. consumer. [.N]

* European shares rose on Tuesday as Aegon (AEGN.AS: Quote) pushed insurers higher after the European Union approved its recapitalisation. [.EU]

* Major markets in Asia rose but Nikkei bucked the trend to close at its lowest in more than eight months.   Continued...