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 BHP Billiton, an Australian natural resources company, is offering to buy Potash for $130 per share, a 16 percent premium over Monday's closing price.
Potash said its board has adopted a shareholder rights plan, also known as a poison pill, to give the company time to better develop alternatives to enhance shareholder value.
It said the BHP Billiton bid is nonbinding and "opportunistic."
"The fertilizer industry is emerging from the recent global economic downturn, and we feel strongly that PotashCorp shareholders should benefit from the current and potential value of the company," Potash said. "Global demand for food is steadily increasing, creating an attractive operating environment for the entire fertilizer industry and, with our premier position, PotashCorp is uniquely poised to benefit."
Last month the Canadian company reported its second-quarter net income more than doubled to $472 million, or $1.55 per share, as revenue surged 68 percent to $1.44 billion.
[Associated
Press]
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