BHP FACES RISING BID DISCONTENT

first_img More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org KCS-content Sunday 22 August 2010 10:41 pm whatsapp MINING giant BHP Billiton could be left with a diplomatic crisis on its hands if it does not move swiftly to address growing investor disquiet over the cost of the company’s mammoth $40bn (£26bn) hostile bid for Canadian fertiliser giant PotashCorp.BHP will this week attempt to calm shareholder fears at a gruelling series of roadshows across the globe, organised in line with its full-year results.Its efforts come after the first investors broke ranks to shoot down the deal. Last week, one of the company’s largest Australian investors, Perpetual, said the firm should launch a share buy-back in place of the acquisition of PotashCorp.BHP’s UK shareholders will prove equally difficult to convince of the rationale for a deal, particularly given fears over the cost of financing the takeover through debt alone.George Godber, a fund manager at Matterley who reduced his holding in the stock sharply when the bid was announced, said there is widespread scepticism over the deal among institutional investors in the City.“BHP Billiton is a wonderful company and very well run,” he said. “But with the amount of debt the company is taking on, it is paying a very full multiple for PotashCorp. I am a big strategic bull on agricultural consolidation, but I’d much prefer to see them do a $20bn buyback and buy something smaller. $130 per share doesn’t feel like a knock out price and the danger is that BHP will have to pay up if it really wants these assets.”Speculation over a potential “white knight” counter-bid for the Canadian company focused at the weekend on China, after state-owned chemical group Sinochem said it would pay “close attention” to BHP’s bid. PotashCorp already owns a 22 per cent chunk of Sinochem’s fertiliser subsidiary Sinofert.Analysts expect further interest from Chinese companies as the bid battle heats up, while rival miners Vale and Rio Tinto have also been touted as potential – though less likely – candidates to propose a tie-up. Show Comments ▼ whatsappcenter_img BHP FACES RISING BID DISCONTENT by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy Fanautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite Herald Share Tags: NULLlast_img

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