K+S Says Private Shareholders Oppose Potash Takeover

By Friedrich Geiger

BERLIN--German fertilizer and salt company K+S AG (SDF.XE) said a majority of its private shareholders support the management's rejection of a takeover proposal by Potash Corp. of Saskatchewan Inc. (POT).

In July, K+S conducted a survey among its private shareholders, who together hold about 30% of the company. About 28% of these shareholders responded with most of them opposing the bid by Potash.

Of the survey respondents, 84% supported the rejection of Potash's takeover bid by K+S's management. Only about 4% of survey participants would sell their shares at the price Potash proposed, which was 41 euros ($44.95) a share. A significantly higher offer would be accepted by 28% of the respondents.

The news further diminishes Potash's chances of taking over its rival, after K+S said Friday it has rebuffed another unsolicited takeover approach from the Canadian company. Potash had earlier made an informal approach, which K+S also rejected.

K+S Chief Financial Officer Burkhard Lohr said: "The prevailing view among [the private shareholders] is in line with that taken by the overwhelming majority of institutional investors that we are in touch with, and who also welcome the rejection of the Potash Corp. proposal."

Write to Friedrich Geiger at [e-mail]

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