Mosaic misses quarterly profit estimates, finance chief to retire
Mosaic had cut its Q3 production forecast following equipment failures in Canada and hurricanes at the US Gulf Coast.
Potashcorp’s spring proposal to combine with K+S was withdrawn today because of poor market conditions.
Potashcorp stock jumped at the news, trading up 2.2% to $20.96 a share. The company has been trading down all year and has lost 36% year to date.
K+S spurred Potashcorp’s spring offer arguing that the initial Cdn$10.9 billion takeover offer was too low and not in its interest.
Potashcorp acknowledged lack of cooperation with K+S as another reason to cancel the bid.
“Our proposal reflected full and fair value, and was predicated on a collaborative process with access to customary due diligence,” said Jochen Tilk, PotashCorp President and CEO.
“Since that time, challenging macroeconomic conditions have contributed to a significant decline of global commodity and equity markets, with potash peer stocks down almost 40 percent*. In light of these market conditions and a lack of engagement by K+S management, we have concluded that continued pursuit of a combination is no longer in the best interests of our shareholders.”
Potashcorp says it is recommitted to organic growth.
