Case Name :      BHP Billiton’s $40 Billion Hostile Bid for Potash Corp.

Authors :           Paul J Simko

Source :             Darden School of Business

Case ID :           UV5249

Discipline :        Accounting

Case Length :    05 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The operations of BHP Billiton Limited (BHP), the world’s largest natural-resources company, spanned the globe with the heaviest concentrations in Asia and Europe. BHP launched a $130 per-share bid for Potash Corporation Inc. (POT) of Saskatchewan, Canada, the world’s largest integrated fertilizer and related industrial and feed products company and the largest producer of potash worldwide by capacity. The acquisition was aimed at meeting BHP’s corporate strategy of becoming a leading global miner of potash. But the offer was d flatly refused by the board and management of POT. Rejection of the initial offer did not dissuade BHP management from commencing the offer through newspaper advertisements beginning on August 20, 2010 and the offer remained open for acceptance until 11:59 p.m. on October 19, 2010. The offer, however, was not subject to how the deal would be financed by BHP. Student can learn how BHP planned to finance the takeover.