A long waiting game

21 September 2010 By Una Galani Follow @ugalani

The longer regulators take to approve the miner’s $38.6 bln offer, the more time there is for rival suitors to emerge. But any white knight hoping to rescue the Canadian group will face similar scrutiny. BHP’s onemonth head start could prove to be a tactical advantage.

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BHP Billiton has extended its offer to buy Canada's Potash Corporation of Saskatchewan for $38.6 billion or $130 per share by roughly one month to Nov. 18, reflecting a decision by Canada's competition regulator to extend its probe into the deal.

The AngloAustralian miner's bid is conditional on receiving clearance from the Canadian Competition authorities, Investment Canada, the U.S. Federal Trade Commission, the Committee on Foreign Investment in the United States and approvals from all other necessary competition and foreign investment bodies.

In addition to the regulatory hurdles, BHP's offer requires acceptances from over 50 percent of Potash Corp shareholders and the successful removal of the fertiliser group's shareholder rights plan.

On Sept. 20, Potash Corp's New York listed shares closed at $148.

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