The chief executive of Potash Corp. of Saskatchewan Inc said on Tuesday he believes BHP Billiton Ltd will not be the only bidder for the world's largest fertiliser company.
Chief Executive Officer Bill Doyle said on a video posting on Potash Corp's website that a number of parties have expressed an interest in alternative transactions.
He said they have approached some and others have initiated contact.
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Doyle said while they continue to discuss those options, they believe that Potash is poised to achieve results as an independent standalone company that "far surpasses BHP's inadequate offer".
BHP Billiton Ltd., the world's biggest mining company, launched a hostile $US130-a-share takeover on August 18 after Potash directors rejected its offer.
Potash is a potassium compound used in agriculture and industry.
Potash consumption has been growing over the past decade as the need for potash grows in tandem with the development of countries like China and India.
The main markets are China, the US, Brazil and India.
Potash shares soared to over $US230 just before the global recession hit in 2008.
"Our large investors have clearly communicated to us that the US$130 per share offer is a nonstarter. In fact, some of our long-term holders have been adding to their positions during this period," Doyle said.
"We anticipate that our long-term shareholders - many of whom have held our stock since we went public over two decades ago - will ultimately decide the value of this company and what, if any, transaction will occur."
Doyle said they feel strongly they can create more value by pursuing alternative options or by continuing to execute on their strategic plan.
He noted that over the last 15 years the compounded annual total shareholder return was 19 per cent.
He said that they expect the "process will be more like a marathon than a sprint".
Chinese state-owned companies like Sinochem are reportedly interested in Potash Corp, but the provincial Saskatchewan government is concerned that a Chinese state-owned company would want to overproduce potash and drive down its price.
A takeover of Potash Corp by BHP Billiton or a Chinese company would need Canadian government approval.
Shares of Potash rose 99 cents to $US149.49 on the New York Stock Exchange.
