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K+S will consider improved bid from Potash Corp
Aug. 17, 2015
K+S KALI GmbH
GermanyFollow
Germany
K+S recently announced that the company would consider any improved bid from Canada's Potash Corp after its position was boosted by stronger than expected quarterly earnings.
CFO Burkhard Lohr said, K+S will deliver strong results as a stand-alone company, The Canadian firm's takeover proposal of 41 euros per share does not even remotely reflect K+S's underlying value, questioning again reassurances the Canadian firm has given on jobs and sites. But he made clear that K+S does not oppose a takeover in principle and would study an improved offer by Potash Corp.
K+S shares traded up 0.8 percent at 36.27 euros as of 07:25 a.m. EDT, underperforming Germany's bluechip DAX index which was up 2 percent. They remain well below the proposed takeover price.
Higher prices for thawing salt in North America, cost cuts and the stronger dollar boosted second-quarter operating profit at K+S by 14 percent compared with year-earlier levels to 179.2 million euros, K+S said on Thursday.
The potash miner said it now expects operating profit to increase to a range of 780-860 million euros, from 641 million last year, and anticipates sales of between 4.35-4.55 billion euros, after 3.82 billion in 2014. By contrast, Potash last month reduced the top end of its full-year earnings forecast and reported lower quarterly profit, mainly due to weakened nitrogen prices.
K+S's management and supervisory boards are extremely concerned that Potash appears to have no sustained interest in continuing the strategically, technically and financially linked fertilizer and salt activities in the current form.
Source: Reuters
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