Here is why K+S investors think deal with Potash Corp. almost cooked – Mining.com

July 9, 2015

Shareholders at Germany-based potash producer K+S AG say a takeover is more likely than most think because suitor Potash Corp’s(TSX:POT) main objective is to seize its rival’s ambitious Legacy project in southern Saskatchewan and scale it back.

Last week, K+S rejected an initial Cdn$10.9 billion takeover offer by Potash Corp., saying the bid was too low and not in its interest. Since then, rumours of an upcoming sweetened bid have circulated strongly among insiders.

They agree that the Canadian potash giant is in a good position to complete the acquisition, if it so desires. The question is whether it would be the right thing to do.

For some it makes sense, as the deal would push Potash Corp.’s market share above 30%, and could give it greater leverage in negotiations with customers.

Read More: http://www.mining.com/here-is-why-ks-investors-think-deal-with-potash-corp-almost-cooked/