Posted by & filed under Company Analysis, Economic Analysis, Growth & Valuation.

Description:  Mining giant BHP Billiton went on the attack Wednesday, saying it will take its nearly $39 billion takeover bid for Potash Corp. straight to shareholders after the fertilizer firm’s board spurned the offer as grossly inadequate.

Source:  Marketwatch.com
  
Date: 08/18/2010

Link: http://www.marketwatch.com/story/bhp-billiton-takes-bid-to-potash-shareholders-2010-08-18?siteid=nwtwk

Questions for discussion:

  • What are the arguments favoring the acquisition of Potash Corp.?
  • What value would you put for Potash Corp. today?
  • What concerns does the financial management of BHP Billiton have as it moves ahead with this and other acquisitions?

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