The news of the morning is that fertiliser maker Potash (POT) revealed that it had come under an unsolicited takeover attempt from miner BHP Billiton.
The company has published a full presentation explaining the rejection.
Some of the key points are as follow:
- Food growth is going to be huge, thanks to global demand factors, and current tight capacity.
- It’s going to be a while before slack is created in the food system, as evidenced by above-historical commodity prices, suggesting ongoing demand for Potash’s fertiliser products.
- Potash is unique in size, scope, and scale, and thus the company has scarcity value. In otherwords, BHP Billiton couldn’t achieve its goals by buying a company like Mosaic (MOS) or Intrepid Potash.
The other key point that goes unspoken: Raise your offer!
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