Potash Corporation owns 13.9% of the Israeli potash producer.
Shares of Israel Chemicals Ltd. (TASE: ICL) rose 8.11% by late-afternoon to NIS 52.81, following an unsolicited offer to acquire shareholder Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT) by Australian mining giant BHP Billiton Ltd. (NYSE:BHP; LSE:BLP; ASX:BHP; JSE:BIBLT) at $130 per share. Although Potash's board of directors unanimously rejected the offer, its share price rose 19.3% to $139.95 in premarket trading in New York.
Potash Corporation owns 13.9% of Israel Chemicals and Israel Corporation (TASE: ILCO) owns 52%. Israel Corp's share is also up 6.9% to NIS 3,164.
BHP Billiton's offer was 16% above Potash Corporation's closing price in New York yesterday. The offer reflected a return on projected 2010 profits of 24. A similar return on profit for Israel Chemicals would means a share price of NIS 67.50.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010