http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews...

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL3888520090303

LONDON, March 3 (Reuters) - German fertiliser company K+S AG is considering a bid for Compass Minerals International Inc, the U.S. producer of de-icing salt and specialty fertilisers, a person familiar with the matter said on Tuesday.

The Daily Telegraph, citing sources, said K+S (SDFG.DE) was planning a $2.4 billion cash bid for Compass (CMP.N), and planned to pitch an initial offer at $78 a share.

The person said these figures may be inaccurate but declined to provide alternatives.

K+S could not immediately be reached for comment.

K+S's board will meet in the middle of March to decide if they were comfortable with the financing obtained for the acquisition, and whether to proceed with a bid, the person said.

"K+S does want to make an acquisition in the U.S. and in the salt area, and Compass comes up as the best fit for K+S," the person said.

Shares in K+S fell 5.28 percent by 1054 GMT to 32.09 euros a share, making it the second-worst performing stock in Germany's Xetra DAX index .GDAXI. In New York, Compass shares closed up 7.3 percent on Monday at $56.02.

The Telegraph said Morgan Stanley was advising K+S, while Dresdner Kleinwort and BNP Paribas had committed to providing financing. Morgan Stanley, Dresdner Kleinwort and BNP Paribas declined to comment. (Reporting by Quentin Webb and Zaida Espana; Editing by Douwe Miedema and Mike Nesbit)