BHP Billiton buys Athabasca Potash

BHP Billiton Canada Inc. has agree to pay about $341-million to acquire Athabasca Potash Inc. (API-T 8.29  1.59  23.73%) in a friendly agreement between the two companies.

The offer is the equivalent of $8.35 cash per Athabasca share.

That’s about 25 per cent higher than the closing price of $6.70 per Athabasca Potash share at the close of trading on Wednesday.

BHP’s offer is also more than double what API’s stock was on July 15 when Athabasca Potash said it was considering potential merger or takeover deals.

BHP Billiton Canada, a subsidiary of the world’s biggest mining company, will have the right to match any superior proposal presented to Athabasca Potash.

API has also agreed to pay $12-million to BHP Billiton if their agreement is terminated under certain conditions…read more at The Globe And Mail

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