Canada’s foreign investment body will rule tomorrow on whether BHP can continue its potash play.
The miner’s acquisition of Potash Corp is expected to rise above $130 per share, and it is hopeful that the takeover bid is seen as providing benefit to Canada.
If the ruling, which is slated for tomorrow night, is given the go ahead then a US Federal Court will meet to decide if BHP’s Bidder Statement provides a total disclosure of the miner’s intent.
After which on 8 November, the securities council will decide on whether Potash Corp’s shareholder rights plan should be suspended.
The market expects any approvals given by the Canadian foreign investment board will be highly conditional.
According to the SMH, BHP may raise the bid by a further 10 percent, which will see the bid jump up to $143 per share but falls short of the predicted $155 per share offer for which Potash will fold.