UPDATE 2-Potash Corp withdraws $8.9 bln bid for German rival K+S

Mon Oct 5, 2015 1:51pm EDT
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* 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

* Shares in K+S drop 25 percent (Adds statement from K+S, shares closing price, adds link to Breakingviews column)

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NEW YORK/FRANKFURT, Oct 5 (Reuters) - Potash Corp of Saskatchewan said on Monday it had withdrawn its 7.9-billion-euro ($8.9 billion) offer for German rival K+S , citing a decline in global commodity and equity markets and a lack of engagement by K+S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

Shares in K+S closed down 25 percent after the Canadian company announced the decision, wiping almost 1.5 billion euros off its market value.

An acquisition of K+S would have given Potash Corp an opportunity to realise 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.

However, senior K+S executives dismissed the Canadian firm's 41-euro-per-share cash bid - which represented a 59 percent premium to the volume-weighted average of K+S's share price during the previous 12 months - as too low and refused to negotiate.   Continued...