BHP Billiton Ltd. took its $38.6 billion offer for Potash Corp. of Saskatchewan Inc. direct to its shareholders, a day after Potash’s board rejected the bid by mining company.
Shares of Potash, the world’s largest fertilizer producer, continued to trade Wednesday well above BHP’s $130-a-share offer. The stock closed at $147.93, up 3.3 percent, on the New York Stock Exchange. Shares soared 27.7 percent Tuesday to close at $143.17, after news of BHP’s offer broke.
The takeover battle stretches across the world, as BHP is based in Australia. Chicago also is playing a central role.
While Potash is based in Canada, its chief executive, Bill Doyle is an American who lives in the Chicago area. In fact, BHP Billiton CEO Marius Kloppers flew to Chicago on Thursday to deliver the letter containing his $38.6 billion offer to Doyle.
Doyle grew up in the Chicago area and started his career as fertilizer salesman with Chicago-based International Minerals & Chemical Corp., which later became known as IMC Global Inc. He joined Potash in 1987 as an executive and lived in Saskatoon, where Potash is based, while he was chief operating officer. When he became CEO in 1999, he moved back to the Chicago area.
Potash has had a sales office in the Chicago area for many years to be close to its U.S. customers in the heartland. In 2000, the company consolidated its U.S. sales offices in Raleigh, N.C., and Memphis, Tenn., in Northbrook. The Northbrook office employs about 200 and includes administrative positions.
Doyle, 60, is active in Chicago business circles. He sits on the board of the Executives Club of Chicago and is a director of the Western Golf Association.
Doyle spends about one week a month in Saskatoon and there is the perception in Canada that the company is run from Chicago, according to published reports. In response to critics of his limited presence in Saskatchewan, Doyle has said that his primary role is to get out and meet customers and investors.
But BHP is aware that some Canadians carry some animosity toward Doyle. In making its offer for Potash, BHP said it would establish its global potash headquarters in Canada, while basing its Canadian potash management in Saskatchewan.
Doyle responded in Tuesday’s conference call, “I don’t think it’s any secret we are regarded as a provincial champion in Saskatchewan and some people think of us as a national treasure in Canada. I’m one of those.”
