UPDATE 2-K+S rejects Potash Corp's takeover approach as too low

Thu Jul 2, 2015 2:12pm EDT
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* K+S says 41 eur/shr offer disregards value of new Canadian mine

* Suitor not interested in keeping business in current form - K+S

* Legacy mine worth up to 21 eur/shr - K+S

* K+S shares close 2 pct lower at 37.02 euros (Adds 2020 outlook, analyst comment)

By Ludwig Burger

FRANKFURT, July 2 (Reuters) - German potash miner K+S rejected Potash Corp of Saskatchewan's 7.9 billion euro ($8.7 billion) takeover bid on Thursday, saying it was too low and that the Canadian suitor could be planning to dismantle the company, putting jobs at risk.

K+S, owner of the Morton Salt brand, said the proposal lacked firm commitments to protect the more than 14,000 K+S employees worldwide and that it had no trust in "vague" pledges that had been made.

The takeover offer of 41 euros per share "completely disregards" K+S's Canadian mining project, known as "Legacy", which should be worth up to 21 euros per share when future cash flows from 2017 onwards are taken into account, the German company said.

K+S, which is the world's largest salt supplier but derives most of its earnings from potash fertilisers, also said it was not convinced that Potash Corp was interested in continuing the German group's fertiliser and salt businesses in their current form.   Continued...