Companies

Sinochem abandons Potash counterbid plan: Report

(Agencies)
Updated: 2010-10-15 15:54

China's Sinochem Corp has abandoned efforts to make a rival offer for Potash Corp as part of plans to spoil BHP Billiton Plc's $39 billion bid for the Canadian fertilizer maker, Reuters reported, citing sources with knowledge of the matter.

The Chinese State-owned chemicals group was not expected to formalize its decision but three sources said on Friday it had given up on efforts to put together a consortium to thwart BHP's hostile offer.

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One of the sources said it is finished. Another source said the idea of forming a counterbid had been dead for more than five weeks. The sources declined to be identified because they were not authorized to talk to media.

Sinochem had hired Deutsche Bank and Citigroup to explore options for foiling BHP's offer, sources had previously told Reuters. Political obstacles in Canada meant any Chinese bid would have to be part of a consortium to succeed.

Sinochem had approached Singapore's Temasek Holdings to join a consortium that might bid but the state investor had made no decision, sources have previously told Reuters. Temasek declined to comment on Friday.

A spokesman from Sinochem declined to comment on its plans or whether it had withdrawn, but said it was still monitoring developments.