UPDATE 2-Potash Corp not planning to increase K+S bid-sources

Wed Jul 8, 2015 11:54am EDT
 
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* 41 eur/shr offer no starting point for further increases-sources

* Paper reports sweetener possible if due diligence shows value

* K+S rejected due diligence last week

* K&S shares down 0.85 pct to 36.55 euros (Adds source saying no mark-up planned by Potash Corp)

July 8 (Reuters) - Potash Corp of Saskatchewan Inc does not plan to sweeten its bid for German rival K+S AG , several people familiar with the Canadian mineral miner said, downplaying a media report that it would consider such a move.

The proposed bid of 41 euros per share already represented an unusually high premium and should not be taken as a starting point for further increases, the sources said. There was no valid reason to speculate on Potash increasing its offer, they said.

Canadian newspaper The Globe and Mail on Wednesday reported that Potash Corp was confident of winning over shareholders with its current $8.7 billion bid, but that it would also be open to raising it slightly under certain conditions.

"If we sit down and do due diligence and they can demonstrate some incremental value to us, we might have an extra euro for them. I wouldn't rule that out," the daily quoted a source close to the matter as saying.

K+S last week rejected Potash Corp's bid, saying it was too low and that the Canadian suitor could be planning to dismantle the company, putting jobs at risk.   Continued...