July 3, 2015 / 8:49 AM / in 3 years

UPDATE 1-Potash Corp says to address K+S's concerns about tie-up

* Suitor seeks to meet K+S management as soon as possible

* Says confident it can address K+S’s concerns

* Says not planning to close mines, curtail production

* K+S shares jump 4.5 percent (Adds shares, analyst comment)

FRANKFURT, July 3 (Reuters) - Canada’s Potash Corp of Saskatchewan said it was confident of addressing concerns raised by K+S over its 7.9 billion euro ($8.7 billion) takeover proposal for the German potash miner, giving K+S’s stock a boost.

K+S rejected Potash Corp’s proposed bid as too low on Thursday, saying its suitor could be planning to dismantle and shrink the company and its pledges to the contrary were too vague.

Potash Corp on Friday said its 41 euros-per-share proposal balanced the interests of investors and other stakeholders, including employees.

K+S shares were up 4.5 percent at 37.90 euros at 0816 GMT, having shed 2 percent the previous day.

Baader Bank analyst Markus Mayer said he expected Potash Corp to come back quickly with an improved offer.

“In our view, the probability of a deal has now increased from 50/50 to 70/30 and consequently we reiterate our Buy recommendation for the stock,” he said.

The Canadian fertiliser group said it was “encouraged by K+S’ response since many of the matters raised have already been addressed in previous correspondence or can be addressed if K+S were to agree to meet with company representatives”.

“We are seeking to meet with K+S management at the earliest possible opportunity so that we can jointly discuss our commitments and further specify the details that would form the basis of a successful combination.”

Potash Corp said its proposal was not based on closing mines, curtailing production, selling K+S’ salt business or cutting jobs.

$1 = 0.9008 euros Reporting by Harro ten Wolde and Ludwig Burger; Editing by Himani Sarkar and Mark Potter

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below