Consolidation in this sector will be swift given the relatively small amount of capital floating around the fertilizer sector and watch prices soar as the big fish get bigger.
------------------------------------------------ Potash Corp. of Saskatchewan Surges on Takeover Speculation
By John Kipphoff
Nov. 30 (Bloomberg) -- Potash Corp. of Saskatchewan Inc. rose C$4.42, or 3.8 percent, to a record C$119.92 in Toronto Stock Exchange trading.
A recent ``abnormal'' move in the company's credit default swap spread may mean that the biggest maker of fertilizer may be taken over, or may be in negotiations to merge with another company, according to BMO Capital Markets analyst Mark Steele.
Potash ``may be involved in a takeout by a company, of lesser credit quality, or merger with a peer where the resultant entity uses higher leverage,'' Steele, a BMO credit market based in Toronto, wrote in note dated Nov. 30.
Amazing chart at the following link: http://stockcharts.com/charts/gallery.html?POT.TO
RWD Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
