potashcorp, bhp, rio + chinese = elm takeover

Today was an important day for all of us, especially with 804 MT of Maiden Jorc ann. Furthermore, 25 more hole drilling program almost confirms an imminent takeover. We spoke about various contenders but IMO the first bid could come from Potashcorp. Why? Bcs, They have potash interests all over the world. Just to name a few,

Potashcorp's Holdings on other potash companies;

SQM / Chile - 32 %
ICL / Israel - 14 %
Arab Potash / Jordan - 28 %
Qinghai (Sinofert) / China - 22 %

and much more.

Why would Potashcorp make a bid?

1./ BHP is trying to dominate the market by takeovers. Potashcorp will make BHP's life a little difficult. The least they could do is make BHP pay more for ELM shares.

2./ ELM's reserves are fantastic, which could prove to be 2 BT

3./ Potascorp's strategy is to secure long term potash reserves and to create barriers for new comers, including Chinese and Indians.

4./ They would want presence in Africa as well. Why wouldn't they?

PotashCorp was saying this on their Quarterly Report on 5-Nov-2010 ;
"Most of our recent capital expenditures have gone to investments in our own potash capacity, and we look to increase our existing offshore potash investments and seek other merger and acquisition opportunities in this nutrient. We also consider share repurchases and increased dividends asways to maximize shareholder value over the long term."




DYOR, No advice given.