CORRECTED-UPDATE 2-Potash Corp keeps sights on buying K+S, trims outlook
(Corrects to remove instrument code of unrelated company)
By Shubhankar Chakravorty and Rod Nickel
July 30 (Reuters) - Potash Corp of Saskatchewan Inc remains focused on acquiring German salt and fertilizer company K+S, the company said on Thursday, as it reduced the top end of its full-year earnings forecast.
Potash, the world's biggest fertilizer company by market capitalization, also reported a 12 percent drop in quarterly profit, missing Wall Street's estimate, mainly due to weak nitrogen earnings and lower phosphate sales.
The company's stock rose 2.6 percent to $27.54 in pre-market activity in New York after hitting a 52-week low on Wednesday.
"The stock probably will see a bit of a rebound solely based on having reached a 52-week low, and people are going to look at the dividend yield, which has gotten pretty attractive," said Peter Prattas, analyst at AltaCorp Capital.
Saskatoon, Saskatchewan-based Potash Corp said it intends to talk with K+S management, despite its rejection this month of Potash Corp's 7.9 billion euro ($8.65 billion) proposed bid of 41 euros per share as too low.
K+S has suggested Potash was planning to shrink the company.
"We remain focused on engaging with and having constructive discussions with K+S management that would include commitments to secure German locations and employment," Potash said in a statement. Continued...