BHP rumoured to be looking at bid for Potash MARKET REPORT: Mining giant BHP Billiton perked up 3.6pc amid intense speculation it is set to pull the trigger on a huge acquisition, possibly the US-based Potash Corporation of Saskatchewan.
By Ben Harrington Last Updated: 10:23PM GMT 26 Mar 2009
BHP is said to have been tapping up the bond markets for cash. The talk emanating from Australia is that the company's US bond marketing team has made it clear to debt market investors that the group has the balance sheet muscle and cash resources to conduct a huge acquisition should the right opportunity arise.
BHP has already looked at the Potash Corporation of Saskatchewan and so could easily return to the deal, said some traders.
Other wild tales doing the rounds included a possible BHP bid for Australian oil and gas explorer Woodside Petroleum or an offer for OZ Minerals, which owns a copper and gold mine based in South Australia.
BHP shares gained 51p to £14.59 on the back of the speculation.
Overall, mining companies peppered the leaderboard following optimistic comments from Rio Tinto, which said it expected China's economic stimulus package to help metal prices rise in the second half of this year. As a result, base metals started to rally again. Copper, for example, regained the $4,000 a tonne level, rising 4.83pc to $4,077 a tonne during Thursday's session.
RWD Price at posting:
48.5¢ Sentiment: Buy Disclosure: Held
