So China really is interested in Potash Corp, as it turns out. How does Canada feel about that? From Reuters…
The disclosure by Alberta Investment Management Corp, which manages some C$70 billion ($67 billion) in public sector pension funds, is one of the first pieces of hard evidence to back up speculation that China is looking for a way to derail a takeover of Potash Corp by the powerful Anglo-Australian miner.
AIMCo said it was not interested, because the economics did not work.
China’s state-owned chemicals giant Sinochem [600500.SS] has reportedly hired HSBC to evaluate options, and chatter persists that sovereign wealth funds, such as China’s $300 billion China Investment Corp, may also be seeking a bid of some kind.
Given the size of the deal, all major investment banks not working with BHP or Potash Corp are pitching possibilities to Chinese clients, multiple investment banking sources in Asia have told Reuters.
But so far, no formal counter bid has emerged, only talk. The hefty price tag is still prohibitive for many potential suitors, bankers say.
BHP is doing a good job of tamping down speculation of a competitive bid. But this news may force it to reconsider making a higher bid. China has the bucks, the need, the willingness to go after foreign assets…the whole package really. It’s looking more and more like BHP has a fight on its hands.
