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