BHP Billiton will not buy at any price Potash

BHP Billiton, the first global mining group, took advantage Wednesday of the publication of its interim results, the best two years for engaging in a show of strength probably intended to show his target Potash and the potential white knights This means that his ambitions.

The Anglo-Australian group has nevertheless worked to calm the market speculation about the possibility of any significant raising its hostile bid of 39 billion dollars (30 billion euros) Potash, the leading manufacturer of fertilizer on the planet, despite the magnitude of his war chest.

"I'll be as disciplined about this offer I have been on other projects," warned the CEO of BHP, Marius Kloppers, during a teleconference.

"This is the shareholders who own the company and my job is to create value for them, not to do anything at any price."

The interim results show however that BHP Billiton Group has the means to raise its offer by $ 130 as Potash, as he emerged from net cash of 17.9 billion over 2009-2010.

The group's net debt, which has already provided $ 45 billion in financing for the acquisition of Potash, fell to 3.3 billion and its ratio of net debt to equity has fallen to 6 %.

BHP COULD OFFER TO 177 DOLLARS PER SHARE POTASH

"BHP could probably go up to almost 200 Australian dollars (177 U.S. dollars) per share (Potash)," said Ric Ronge, portfolio manager at Capital Pengan.

"In the absence of another suitor for these assets, BHP acting properly in the sense that he simply proposed a price (…) and he is awaiting a response."

One key issue for shareholders is whether BHP is willing to raise its offer by more than 22% in which case the group should seek formal approval to comply with British regulations on takeovers.

Shareholders of Potash interviewed by Reuters said they would accept an increase in supply to 162 dollars per share, while many analysts estimated that the deal could be reached at $ 157 per title.

Some shareholders worry that take risks by buying BHP Potash, a leading player in a market that does not know.

The mining group justifies his project by his desire to enjoy the explosion of global demand for potash to meet growing countries like India and China.

"The question is not whether BHP can afford (to buy Potash).Whether there is a strategic fit, "said one investor.

DOUBTS ON THE AGREEMENT WITH RIO

BHP has emerged over the period January to June, the second half of its fiscal year, net earnings excluding items of 6.77 billion dollars against 4.59 billion a year earlier.

The 13 analysts polled by Reuters had expected a result of about 6.9 billion dollars.

The mining group was, however, cautious about the global outlook in the short term.

He has estimated that the economic growth of China, its largest market, was slow.

"After a strong recovery in prices for most products of BHP Billiton, the short-term outlook for commodities is mixed," the group said in announcing the results.

Marius Kloppers has also been less sure of obtaining the approval of regulatory authorities on its proposed joint venture for iron ore with Rio Tinto, which would allow it to save 10 billion dollars.

The two groups should reflect on what they will do if their agreement to expire without obtaining clearance from the authorities, said the head of BHP.

Around 9:55 GMT, BHP yielded 0.28% at the London Stock Exchange to 1798 pence, while Rio Tinto gave up 0.32%.Potash action listed in Frankfurt fell by 0.42%, to 117.90 euros, or 149.65 dollars.

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