October 2010 Prairie Economic Fundamentals
- Thread starter Ally
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AimCo looms as Potash spoiler
EDMONTON - AIMCo isn`t the white knight Potash Corp. of Saskatchewan was desperately seeking in its efforts to trump BHP Billiton`s hostile $38.6-billion-US takeover bid.
But Alberta`s giant public sector pension and endowment fund manager -- formally known as Alberta Investment Management Corp. -- may yet play the role of spoiler as the tangled corporate drama nears a conclusion.
According to a report Monday in a Toronto-based newspaper, AIMCo is heading a group of Canadian pension funds that are discussing a plan to acquire a large minority stake in Potash Corp.
The scheme, which reportedly calls for the AIMCo-led group to purchase about 30 per cent of Potash Corp.`s shares, could be enough to stymie BHP`s $130-a-share bid, thus keeping the resource powerhouse in Canadian hands.
AIMCo boss Leo de Bever, who was in Toronto on Monday on unspecified business, declined to comment on the media report. "It is our policy not to comment on market rumours or speculation," he told The Journal by e-mail.
Read the full article here.
EDMONTON - AIMCo isn`t the white knight Potash Corp. of Saskatchewan was desperately seeking in its efforts to trump BHP Billiton`s hostile $38.6-billion-US takeover bid.
But Alberta`s giant public sector pension and endowment fund manager -- formally known as Alberta Investment Management Corp. -- may yet play the role of spoiler as the tangled corporate drama nears a conclusion.
According to a report Monday in a Toronto-based newspaper, AIMCo is heading a group of Canadian pension funds that are discussing a plan to acquire a large minority stake in Potash Corp.
The scheme, which reportedly calls for the AIMCo-led group to purchase about 30 per cent of Potash Corp.`s shares, could be enough to stymie BHP`s $130-a-share bid, thus keeping the resource powerhouse in Canadian hands.
AIMCo boss Leo de Bever, who was in Toronto on Monday on unspecified business, declined to comment on the media report. "It is our policy not to comment on market rumours or speculation," he told The Journal by e-mail.
Read the full article here.
- Joined
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BHP `confident` it can meet Saskatchewan`s concerns over Potash Corp. takeover
TORONTO — BHP Billiton Ltd. said Wednesday it is "confident" it can meet concerns raised by the Saskatchewan government, which has said it would lose billions of dollars of tax revenue in a takeover by the Australian-based mining giant of Potash Corp. of Saskatchewan Inc.
BHP issued the statement after Saskatchewan on Tuesday rejected the proposed takeover of Potash Corp., saying BHP refused to meet the province`s demands, putting the approximately $40-billion U.S. offer in jeopardy.
"The province of Saskatchewan has stated that it will lose $3 billion in revenue as a result of the acquisition of Potash Corp.," BHP said. "The province`s concerns arise primarily from tax deferrals, which are fully permitted under existing laws in Canada, and this was recognized by the Conference Board of Canada in its report commissioned by the province.
"Nonetheless, BHP Billiton is confident it can address this concern and, in this regard, is prepared to make commitments which go beyond the requirements of prevailing Canadian legislation that should effectively address the tax loss concerns of the province."
For weeks, the Saskatchewan government has expressed doubt that BHP`s bid for Potash Corp. would provide a "net benefit" to the province. But Tuesday, a source familiar with the transaction confirmed that Saskatchewan will recommend that Investment Canada reject the bid, citing concerns about loss of tax revenue.
Read the full article here.
TORONTO — BHP Billiton Ltd. said Wednesday it is "confident" it can meet concerns raised by the Saskatchewan government, which has said it would lose billions of dollars of tax revenue in a takeover by the Australian-based mining giant of Potash Corp. of Saskatchewan Inc.
BHP issued the statement after Saskatchewan on Tuesday rejected the proposed takeover of Potash Corp., saying BHP refused to meet the province`s demands, putting the approximately $40-billion U.S. offer in jeopardy.
"The province of Saskatchewan has stated that it will lose $3 billion in revenue as a result of the acquisition of Potash Corp.," BHP said. "The province`s concerns arise primarily from tax deferrals, which are fully permitted under existing laws in Canada, and this was recognized by the Conference Board of Canada in its report commissioned by the province.
"Nonetheless, BHP Billiton is confident it can address this concern and, in this regard, is prepared to make commitments which go beyond the requirements of prevailing Canadian legislation that should effectively address the tax loss concerns of the province."
For weeks, the Saskatchewan government has expressed doubt that BHP`s bid for Potash Corp. would provide a "net benefit" to the province. But Tuesday, a source familiar with the transaction confirmed that Saskatchewan will recommend that Investment Canada reject the bid, citing concerns about loss of tax revenue.
Read the full article here.