PotashCorp. Confident K+S Concerns Can Be Addressed Through Collaborative Talks

(RTTNews) - Potash Corp. of Saskatchewan Inc. (POT.TO, POT) Friday acknowledged the statement issued by German potash maker K+S Aktiengesellschaft (SDFG), adding that it is confident that K+S concerns can be addressed through collaborative discussion.

K+S Thursday said its Board of Executive Directors and the Supervisory Board have decided to reject the unsolicited proposal of Potash Corp. to acquire all outstanding shares of K+S for 41 euros per share.

The group said the proposed transaction does not reflect the fundamental value of K+S and is not in the best interest of the company.

PotashCorp said Friday it believes the proposed transaction would combine two best-in-class companies with minimal overlap to create a global producer in the nutrient industry for the long-term benefit of investors, customers, employees and the communities where both companies operate.

The company affirmed that its proposal is not predicated on closing mines, curtailing production, selling the salt business or cutting jobs.

PotashCorp said it has put forward a compelling proposal to negotiate a transaction that it believes balances the interests of investors and other stakeholders, including the employees and communities in which the companies operate.

The company said it is encouraged by K+S' response since many of the matters raised have already been addressed in previous correspondence or can be addressed if K+S were to agree to meet with company representatives.

PotashCorp CEO Jochen Tilk said, "...Management and employees of K+S are critical to the future performance of the combined company and we look forward to working collaboratively to address any issues, including safeguarding the interests of employees and communities.

"We are seeking to meet with K+S management at the earliest possible opportunity so that we can jointly discuss our commitments and further specify the details that would form the basis of a successful combination," he added.