RPT-UPDATE 2-Potash Corp withdraws $8.9 bln takeover bid for German peer K+S

Mon Oct 5, 2015 4:13am EDT
 
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(Repeats to include link to Potash Corp CEO's letter)

* Potash Corp had offered 41 euros per share in cash

* K+S had refused to negotiate, deeming bid too low

* K+S was sceptical of Potash Corp's assurances on jobs

* K+S shares drop 24 percent (Adds K+S shares, analyst comment)

By Greg Roumeliotis and Arno Schuetze

NEW YORK/FRANKFURT, Oct 5 (Reuters) - Potash Corp of Saskatchewan said on Monday it had withdrawn its 7.9 billion euro ($8.9 bln) offer for German potash producer K+S , citing a decline in global commodity and equity markets and a lack of engagement by K+S management.

K+S shares dropped 24 percent after Potash announced its decision in a statement, wiping almost 1.5 billion euros off the company's market value.

An acquisition of K+S would have given Potash Corp an opportunity to realize savings from selling potash within North America from its own Western Canada mines and from K+S's Legacy mine, which is under construction in the region.   Continued...