BHP confident of Potash takeover

[Topaz]

Well, if BHP is confident of the potash takeover, then Harper must have given them a green light and I just wonder what the next election out west will be for the Tories, especially in Saskatchewan? http://www.theglobeandmail.com/globe-investor/potash/bhp-confident-of-potash-takeover-approval-this-week/article1780076/

[William Ashley]

Well, if BHP is confident of the potash takeover, then Harper must have given them a green light and I just wonder what the next election out west will be for the Tories, especially in Saskatchewan? http://www.theglobeandmail.com/globe-investor/potash/bhp-confident-of-potash-takeover-approval-this-week/article1780076/

Maybe they are just attempting to float the boat with good news so they can abandon ship in the life boats.

Raise shares get higher values on their dump... or not.

Why doesn't manitoba just sell $5 billion in shares if it wants to increase infrastructure by 5 billion?

Why is BHP so set on control? If the company is good - the only reason you possess is so you can sell it later or to manipulate the market or company some how.

5 billion in shares while not a majority is a say. Who are the major holders of shares currently?

http://www.potashcorp.com/investors/shareholder_information/

stock split seems like a much better option for POT

Edited November 1, 2010 by William Ashley

[M.Dancer]

Well, if BHP is confident of the potash takeover, then Harper must have given them a green light and I just wonder what the next election out west will be for the Tories, especially in Saskatchewan? http://www.theglobeandmail.com/globe-investor/potash/bhp-confident-of-potash-takeover-approval-this-week/article1780076/

They are confident because the shareholder like the offer. It is afterall their money and they are the ones who should decide.

[DrGreenthumb]

They are confident because the shareholder like the offer. It is afterall their money and they are the ones who should decide.

Harper will lose every Sask seat if he allows it, so while I think selling off control our resources is bad, it might be worth it to finally get rid of the Harpercrites.

[Jerry J. Fortin]

Harper will lose every Sask seat if he allows it, so while I think selling off control our resources is bad, it might be worth it to finally get rid of the Harpercrites.

I would like to see the Conservatives lose the province, but not at the cost of GIVING away a strategic asset. I cannot believe that the feds will allow this to happen.

[M.Dancer]

I would like to see the Conservatives lose the province, but not at the cost of GIVING away a strategic asset. I cannot believe that the feds will allow this to happen.

What is strategic about potash?

[TimG]

What is strategic about potash?

Canada controls 40% of the world's supply. That means Canadian companies can manage the world price.

[William Ashley]

What is strategic about potash?

http://en.wikipedia.org/wiki/Potash

http://www.potash1.ca/s/Potash.asp

Edited November 1, 2010 by William Ashley

[M.Dancer]

Harper will lose every Sask seat if he allows it, so while I think selling off control our resources is bad, it might be worth it to finally get rid of the Harpercrites.

So you think the citizens of Sask, are not the majority of the retail shareholders?

[M.Dancer]

http://en.wikipedia.org/wiki/Potash

http://www.potash1.ca/s/Potash.asp

I know what is potash, I was wondering what makes it strategic.

[M.Dancer]

Canada controls 40% of the world's supply. That means Canadian companies can manage the world price.

About 30% actually...That in itself does not make it strategic.

[TimG]

About 30% actually...That in itself does not make it strategic.

Provides leverage. China has already used its rare earth metal monopoly as a diplomatic weapon. Having control over other commodities gives us a defence.

That said, I am not sure what to do with this issue. My main concern is the breakup of the marketing board would hurt other producers. OTOH, do we really care who owns the right to exploit the resource as long as we have a decent royality and environmental protection mechanism in place.

[ToadBrother]

Provides leverage. China has already used its rare earth metal monopoly as a diplomatic weapon. Having control over other commodities gives us a defence.

That said, I am not sure what to do with this issue. My main concern is the breakup of the marketing board would hurt other producers. OTOH, do we really care who owns the right to exploit the resource as long as we have a decent royality and environmental protection mechanism in place.

Well, there are also fears of job losses, but beyond that, no I don't really care. Saskatchewan will still get its cut.

[wyly]

I would like to see the Conservatives lose the province, but not at the cost of GIVING away a strategic asset. I cannot believe that the feds will allow this to happen.

lose 13 seats? that would be the end of any hope of a conservative majority government...letting an american company be taken over by an Aussie company is there a difference, can't be good for a pro business conservative governments image...quite the predicament for glorious leader...

[M.Dancer]

...letting an american company be taken over by an Aussie company is there a difference, can't be good for a pro business conservative governments image...

How can you be more pro business that allowing business to buy and sell?

[DrGreenthumb]

So you think the citizens of Sask, are not the majority of the retail shareholders?

If you think the majority of Sask citizens own shares then you are more delusional than I thought. Most Canadians do not have the money to buy stock in anything, most are lucky if their paycheques lasts until they get the next one.

[August1991]

Harper will lose every Sask seat if he allows it, so while I think selling off control our resources is bad, it might be worth it to finally get rid of the Harpercrites.

"...selling off control... "

How do you define this? If Paul Desmarais (a Canadian citizen) controls the resource how is this different from Conrad Black (not a Canadian citizen) controlling it?

I am astonished sometimes that people mistakenly believe that Canadian capitalists are any less rapacious than foreign capitalists.

----

In any case, the Ontario Teacher's pension fund bought the UK National Lottery operator (among many other foreign acquisitions). What would happen if the Australians or British suddenly refused such transactions on the grounds that their nationals can't buy Canadian assets?

----

Make no mistake here. The Saskatchewan government will still levy and receive royalties on potash production. Whoever exploits the resource - whether Canadian, Australian or Uzbek - our governments can tax them. At issue here ultimately is who can best manage this business. If BHP can do a better job, then we will all gain from this.

Edited November 2, 2010 by August1991

[M.Dancer]

If you think the majority of Sask citizens own shares then you are more delusional than I thought.

If you think that is what I said, then your reading abilities are sub par.

Most Canadians do not have the money to buy stock in anything, most are lucky if their paycheques lasts until they get the next one.

No that, is delusional. Also incorrect. Anyone who owns a mutualfund, owns stock (by proxy). Anyone who has an RRSP, owns stock (by proxy). Amyone who has a company pension, owns stock (by proxy).

And to nail your nonsense, 62% of Canadians own an RRSP...so contrary to your delusions, most Canadians do own stock.

Now you have to answer, why are you opposed to Canadian shareholders profitting form their investments?

Edited November 2, 2010 by M.Dancer

[GostHacked]

Not a fan of the idea. At this rate, there won't be any Canadian owned companies. It will all be owned by foreigners who don't really care about the average Canadian. The money is going out, not coming in.

The two biggest mining companies in Canada are now foreign owned.

[William Ashley]

Not a fan of the idea. At this rate, there won't be any Canadian owned companies. It will all be owned by foreigners who don't really care about the average Canadian. The money is going out, not coming in.

The two biggest mining companies in Canada are now foreign owned.

This is what is important:

http://www.potashcorp.com/about/management_board/senior_management/doyle/

how does that change...

This is a takeover not a merger..

http://www.bhpbilliton.com/bb/aboutUs/companyOverview/ourBoard.jsp

40 billion in capital (perhaps 20 billion of which migrates to Americans) or how does this work now?

[M.Dancer]

This is a takeover not a merger..

http://www.bhpbilliton.com/bb/aboutUs/companyOverview/ourBoard.jsp

Correct, and so?

That's why they are called mergers and acquisitions..

[William Ashley]

This is what is important:

http://www.potashcorp.com/about/management_board/senior_management/doyle/

how does that change...

This is a takeover not a merger..

http://www.bhpbilliton.com/bb/aboutUs/companyOverview/ourBoard.jsp

40 billion in capital (perhaps 20 billion of which migrates to Americans) or how does this work now?

BTW you need to watch the market - it is going mad for BHP right now up 50 points today... so far.. POT ISI UP 1

[wyly]

BTW you need to watch the market - it is going mad for BHP right now up 50 points today... so far.. POT ISI UP 1

if Wall had not made it an issue the people of Saskatchewan would have let go by without to much protest, but he didn't he made it an issue...an issue that will carry over to the next election if the company is sold...Harper can come out the hero in Sask if he stops the sale, if he doesn't Sask voters (unlike Alberta's)will have no qualms when switching their vote to NDP or Liberal candidates...

[Topaz]

Going , going, gone....its a done deal. http://www.financialpost.com/news/Investment+Canada+gives+Potash+tentative/3760213/story.html

[M.Dancer]

Going , going, gone....its a done deal. http://www.financialpost.com/news/Investment+Canada+gives+Potash+tentative/3760213/story.html

A source said government monitoring has been proposed to enforce the takeover terms, among them BHP’s promised relocation of executives to Saskatoon and multi-billion-dollar infrastructure investments.

Read more: http://www.financialpost.com/news/Investment+Canada+gives+Potash+tentative/3760213/story.html#ixzz149ockaKX

Most of the Potash board now resides in the US.