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Wednesday, October 20, 2010

Saskatchewan Against BHP Potash Deal

Saskatchewan (Canadian province) has opposed BHP Biliton's hostile bid for Potash Corp. Canadian officials are faced with a dilema of whether to let the deal go through or not. Saskatchewan wants $3 Billion in compensation to make up for lost tax revenues over the next 10 years. However, BHP, the world's largest mining company, only offered Saskatchewan a fraction of the desired $3 billion.

BHP is confident that it can address all of Canada's concerns and will do all in its power to ensure the deal is done successfully. Saskatchewan will now give the bid an unfavorable review later this week causing Canada to possibly reject the deal.

Potash shares are down nearly 2% on trading Wednesday afternoon.