BHP May Take Potash Bid Hostile

BHP Billiton BHP, the world's largest mining company, may take its nearly $39 billion acquisition offer for Potasah Corp. of Saskatchewan POT after the Canadian fertilizer maker rejected BHP's unsolicited offer on Tuesday. BHP, which appears unlikely to raise its $130 per share offer, may take its bid directly to Potash shareholders, according to Bloomberg News. Potash called BHP's bid "highly opportunistic" and "grossly inadequate." If BHP is successful in its bid for Potash, it would be the Australian company's largest purchase ever. The mining sector is the third-most active in 2010 for mergers and acquisitions activity behind telecom and energy, Bloomberg reported. Potash has adopted a so-called "poison pill" plan that prevents any outsider from acquiring more than 20% of the shares outstanding. Analysts have said the company could be worth $150-$180 a share.