June 26, 2015 / 6:48 AM / 3 years ago

REFILE-BUZZ-K+S shares seen up 32 pct on Potash takeover proposal

(Refiles with share indication in headline)

** Shares in Germany’s K+S are indicated to open 31.5 percent higher after the company receives a takeover proposal from larger Canadian fertilizer producer Potash Corp of Saskatchewan Inc.

** Two sources close to the matter however, say K+S will likely reject the 7 billion euro ($7.8 billion) takeover offer as being too low.

** The sources say the offer values K+S at just over 40 euros a share, a 38 percent premium to Thursday’s closing price.

** Jeremy Redenius, analyst at Bernstein, estimates the probability of deal completion at 75 percent.

** “K+S is likely worth more when owned by PCS than stand-alone,” he writes in a note. As PCS is a much larger company ($27B market cap), they can better absorb several risks that cause K+S to trade at a discount to its long-run fair value.” ($1 = 0.8930 euros) (RM://harro.tenwolde.thomsonreuters.com@reuters.net)

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