Potash Likely To Have More Bidders

Morgan Stanley is maintaining its view that there is a strong probability that other bidders emerge for Potash Corp. POT, which would likely drive its valuation beyond the original Base Case of $160 per share and more towards a bullish case of $200 per share. The original bid disclosure is about three weeks old while there has not been any other offers. Morgan Stanley believes bids could still be weeks off as the more it is thought about, the less upside is seen by another party coming forward with Potash's current share price materially in excess of the original bid price. Potash could ultimately play its own "self help" cards, if other parties can sell the publicly traded subsidiaries as well as the nitrogen and phosphate assets. Potash closed Friday at $148.84 and is currently trading down about a percent in mid-day trading.