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BHP's Bid for PotashCorp. Opposed by Saskatchewan Majority, Survey Shows
BHP Billiton Ltd.’s $40 billion hostile bid for Potash Corp. of Saskatchewan Inc. is opposed by a majority of Saskatchewan residents, a survey showed.
Fifty-five percent of 817 respondents said they either “strongly” or “somewhat” oppose the takeover by the world’s biggest mining company, compared with 14 percent who support it and 22 percent who are indifferent, researcher Insightrix Research found in an Aug. 25 survey. The poll was conducted online and doesn’t have a margin of error, Insightrix said.
“It shows that there’s some quiet opposition in our province to having BHP Billiton potentially acquire Potash Corporation,” Lang McGilp, Insightrix’s manager of research services, said today in a telephone interview. “At the water- cooler, the sense of discussion is likely, ‘Is this really a good thing for the province?’”
While Saskatchewan doesn’t have formal authority to block the bid, it will commission its own study and contribute to the federal government’s review under the Investment Canada legislation, Linda Ungar, a spokeswoman for Energy and Resources Minister Bill Boyd, said in an e-mail yesterday.
Potash Corp. is a source of pride for residents, said David McGrane, a political science professor at the University of Saskatchewan in Saskatoon.
“There’s definitely a sense with almost everybody, in terms of politicians or academics or media commentators, that BHP, if it wants to take over Potash Corp., is going to have to offer some assurances, some commitments that are binding,” McGrane said. “That’s why you see the charm offensive of BHP here in Saskatchewan.”
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McGrane cited advertisements the company placed today in local newspapers and a tour of its Jansen potash project it gave to reporters yesterday to show its commitment to the province.
“Legislation addressing foreign takeovers, such as the one currently being attempted by BHP Billiton, rests with the federal government,” Ungar said the e-mail. “However, the government of Saskatchewan has a variety of options to consider, and to that end will be commissioning an analysis of this potential takeover to ensure that the interests of the people of Saskatchewan are protected.”
In the poll, about 10 percent said they were unsure of the matter, according to Insightrix.
Potash, based in Saskatoon, Saskatchewan, rejected last week’s $130-a-share bid from Melbourne-based BHP and said it is seeking other offers.
Potash Corp. rose C$1.88, or 1.2 percent, to C$155.22 at 4:19 p.m. in Toronto trading. The shares have advanced 33 percent since Aug. 16, the day before Potash disclosed BHP’s approach.
To contact the reporter on this story: Alexandre Deslongchamps in Ottawa at adeslongcham@bloomberg.net.
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