Chinese bid to block BHP Billiton tie-up

first_imgSunday 5 September 2010 9:58 pm CHINESE officials have ordered state companies to meet investment bankers to explore ways to block BHP Billiton’s $39bn (£25.3bn) bid for Potash.In response to the directive, sources say Sinochem is holding meetings with several banks, including Citigroup, HSBC and Morgan Stanley.The order from Beijing underscores the seriousness with which China is taking the potential BHP-Potash tie up and its implications for the pricing and supply of the crop nutrient, despite obstacles to launching a successful counter-bid.A Wall Street Journal report last week said Sinochem had hired HSBC to advise on options pertaining to Potash.One option being discussed is the possibility of Sinochem linking with China’s $300bn sovereign wealth fund CIC, according to a second banking source familiar with the matter.The most likely scenario is that China will consider buying a blocking stake, rather than attempt a complete takeover of Potash.Assuming a consortium pays a 20 per cent premium to Potash’s market price, a 15 per cent stake would cost about $8.3bn.Sinochem and the banks declined to comment. CIC could not immediately be reached.BHP chief executive Marius Kloppers has poured cold water on the possibility of a rival bid but another source close to the situation in Europe said the latest developments are evidence of solid interest in Potash by third parties.Chinese firms have also approached at least one big Canadian pension manager about a rival bid. Potash shares in New York closed down five cents on Friday at $148.50, while BHP’s London shares ended the day up 1.8 per cent. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definitioninvesting.comCanceled TV Shows Announced: Full Updated Listinvesting.comthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comFolliboost Haircare SerumThinning Hair? Use this For 1 Month and See What HappensFolliboost Haircare SerumFilm OracleHer Love Triangle Inspired 3 Of The Most Popular Songs Ever WrittenFilm Oracle Show Comments ▼ Read This NextNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’Sportsnaut’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof KCS-content center_img whatsapp Tags: NULL whatsapp Chinese bid to block BHP Billiton tie-up Sharelast_img

Leave a Reply

(*) Required, Your email will not be published