BHP Billiton will take bid directly to Potash shareholders

Posted August 23rd, 2010 by Brahm Canzer & filed under Company Analysis, Economic Analysis, Growth & Valuation.

Description:Â 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:Â Marketwatch.com
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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?