potash corp. rejects bhp offer

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Potash Corp. Board Rejects $130-a-Share BHP Proposal (Update1)
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By Rebecca Keenan and Amanda Jordan

Aug. 17 (Bloomberg) -- Potash Corp. of Saskatchewan Inc., the world?s largest fertilizer producer by market value, said its board rejected an unsolicited takeover proposal from BHP Billiton Ltd. for $130 a share in cash.

?The Potash Corp. Board of Directors unanimously believes that the BHP Billiton proposal substantially undervalues Potash Corp. and fails to reflect both the value of our premier position in a strategically vital industry and our unparalleled future growth prospects,? Chairman Dallas Howe said today in a statement.

Potash Corp. produces fertilizer, industrial and animal feed products. Consolidation in the fertilizer industry is increasing as the population grows, boosting the need for food. The global population will swell to 9.1 billion in 2050 from 6.8 billion, the United Nations? Food and Agriculture Organization said in September.

BHP Chief Executive Officer Marius Kloppers said last August that his company would spend ?billions of dollars? to develop its Jansen potash project in Canada, which is near Potash Corp.?s mines. Potash Corp. said in October it was idling almost half its capacity in mining the crop nutrient and laying off as many as 700 workers.

Ruban Yogarajah, a spokesman for BHP, couldn?t immediately be reached for comment.