K+S Rejects Potash Corp's Latest Offer - Update

(RTTNews) - German fertilizer maker K+S AG, once again on Friday rejected Potash Corp Saskatchewan Inc (POT, POT.TO)'s latest unsolicited acquisition offer, indicating it as unreliable and does not reflect the actual value of the company.

Earlier today, Canadian fertilizer giant Potash Corp in a communique to the board of K+S, proposed an unsolicited business combination with an unchanged price of 0.41 euros a share. In June, Potash Corp made an unsuccessful bid for K+S, also at 0.41 euros a share, or 7.9 billion euros ($8.6 billion).

Although Friday's offer price for K+S is unchanged, Potash Corp's latest bid is a concrete offer, in comparison to its prior bid and includes commitments on job security and production in Germany.

Rejecting the latest Potash Corp offer, K+S said the commitments proposed do not provide reliability.

"They are foiled by far-reaching restrictions in essential parts and are not effectively enforceable. From the perspective of K+S' Board the concern remains unchanged that the transaction proposed by Potash Corp puts jobs at risk and that sites and raw material," K+S said.

Potash Corp's relentless offer for K+S comes amid lower prices for potash. An earlier bid in 1997 by Potash Crop to buy K+S was scuttled by the German competition watchdog.

K+S is the world's largest salt producer and one of the top potash providers worldwide. With more than 14,000 employees, K+S recorded sales of about 3.8 billion euros in 2014.

Potash Corp shares are trading at $26.88, down $0.13 or 0.48%, on the NYSE. In Toronto, the stock is trading at C$35.24, down $0.12 or 0.34%.

On Frankfurt's Xetra exchange, K+S closed at 37.11 euros, up 0.40 euros or 1.10%.