K+S hasn't set minimum for Potash Corp bid - CFO in Boersen-Zeitung

Thu Jul 9, 2015 2:24am EDT
 
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FRANKFURT, July 9 (Reuters) - K+S finance chief Burkhardt Lohr denied the German potash miner had set 50 euros per share as a minimum it expected suitor Potash Corp of Saskatchewan Inc to offer for the group, according to a newspaper interview.

"We did not set a minimum level. We merely showed how the fundamental value of K+S is calculated so that it becomes more clear why we had to reject the offer (by Potash Corp)," German business daily Boersen-Zeitung quoted Lohr as saying in an interview published on Thursday.

K+S rejected Potash Corp's 7.9 billion euro ($8.8 billion) bid proposal last week, saying it was too low and that the Canadian suitor could be planning to dismantle the company, putting jobs at risk.

At the time, K+S CEO Norbert Steiner said Potash Corp's proposal did not include a sufficient premium and did not reflect the value of K+S's Canadian mining project, called Legacy, which he said could reach up to 21 euros per share.

His comments sparked speculation the valuation of Legacy could mean Potash Corp would have to pay at least 50 euros per share to buy K+S, well above its current 41-euro-per-share proposal.

There has been speculation that Potash could sweeten its bid, but several people familiar with the Canadian mineral miner told Reuters on Wednesday the group had no such plans.

($1 = 0.9008 euros) (Reporting by Maria Sheahan; Editing by Mark Potter)