UPDATE 4-K+S shares surge after Potash Corp takeover approach

Fri Jun 26, 2015 1:14pm EDT
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* K+S shares close 30 pct higher

* Potash proposes 41 eur/shr - source

* German politician fears for mining jobs

* K+S will likely reject offer as too low -sources (Adds Potash shareholder comment, German politician's comments, updates share prices)

By Arno Schuetze and Ludwig Burger

FRANKFURT, June 26 (Reuters) - Shares in German potash miner K+S leapt as much as 40 percent on Friday after a takeover proposal from Canada's Potash Corp of Saskatchewan , which sources close to the matter said was worth close to 8 billion euros ($8.9 billion).

K+S, which would become the first German blue-chip firm in a decade to be bought by a foreign company, said it was assessing its options after announcing the approach late on Thursday.

Two sources close to the matter said K+S would likely reject the proposal as too low.

K+S believes Potash wants to take capacity out of an over-supplied market to boost profitability, the sources said, adding it might close some of K+S's high-cost German mines and sell its salt business.   Continued...