This hostile takeover attempt by BHP- Billiton has created a lot of discussion here in Saskatchewan. The only real concern seems to be the retention of the corporate headquarters and the jobs attached to this, here in the province. As far as a foreign take over is concerned, I do not think there is anything that can stop it if it is done legally. The only way it could be stopped would be if the Canadian government would not approve of the take over on the grounds that it was not in the best interest of the Canadian population. This decision may have detrimental affects as well, as BHP Billiton has invested several Billions into Saskatchewan in recent years and they may pull this investment out if their take over is disallowed.
They have stated publically that they would retain their world corporate potash headquarters in Saskatchewan, but how can you guarantee this for more than a few years into the future? The next 90 days or so, are certainly going to be interesting. I suspect this opening bid of $130 per share may start a bidding war. As far as I am concerned, PCS being Australian owned is much better than being Chinese owned. ( and that could come into the mix yet as China is one of the worlds largest users of potash fertilizer!!)
If this take over does occur, it will be the largest corporate sale in Canadian history. The Chairman of the Potash Corporation of Saskatchewan, will get a serverance package of $445 Million ( $445,000,000) if this sale takes place. How does a person get one of these jobs???
The Potash Corporation of Saskatchewan has an interesting history. It is a company that was created by the Saskatchewan government as a Crown corporation and it was a lame duck company that routinely lost between $80- 150 Million each year when it was publically owned. In the early 80s, it was sold to the private sector and it instantly took off and is now one of the most successful companies in the world. PCS is the largest fertilizer company in the world presently, and it has a major impact on our economy. This company is more proof that governments should govern and protect, and leave the running of business to the private sector. I am really getting tired of all governments trying to legislate everything in our lives, including things that used to be considered to be common sense issues.
