"It would seem to us at first glance that their interest and the interest of taxpayers of Saskatchewan may not be aligned," said Saskatchewan Energy Minister Bill Boyd.
The province flexed its muscle in the Potash Corp. takeover battle, knowing that its support for any bid is the key. While Saskatchewan doesn't have the power to stop a bid, it can influence the federal government's decision on whether or not to approve a takeover.
So far, Potash Corp. has rejected BHP's US$130 per share offer as too low, saying it was talking to other companies interested in making a competing offer. (At the time Western Investor went to press names of the companies had not been made public.)
Former premier Grant Devine has said the provincial government must "absolutely" extract legally binding guarantees from mining giant BHP if it buys Potash Corp.
He is concerned BHP might backpedal on promises to establish a Canadian headquarters in Saskatoon, hire more workers and contribute to the community after acquiring the former Crown corporation, which his government privatized in 1989.
BHP officials are also pledging to go ahead with plans to build a massive mine at Jansen, east of Saskatoon, whether BHP's takeover succeeds or not.
from Western Investor, October 2010
