K+S AG has rejected another multibillion-dollar takeover offer from PotashCorp of Saskatchewan (PCS).
On its website on Friday, the German fertilizer producer said PCS sent a letter which included a business combination agreement to address the interests of workers and local communities. But K+S said the offer was still too low.
“We are still convinced that the proposed price of 41 euro per share does not at all reflect the fundamental value of K+S,” Norbert Steiner, CEO of K+S, said in a statement.
“This is true for our existing business but in particular for the value contribution of our Legacy project,” he added, referring to the company’s potash development in southern Saskatchewan that is expected to begin production in mid-2016.
K+S AG did not explain details of the business combination agreement.
PCS confirmed to the Canadian Press that it sent a letter but would not discuss what was proposed. PCS confirmed on June 25 it had made a “friendly” bid to acquire the company’s assests but that offer was rejected in early July.
The proposed takeover offer valued K+S at about 7.85 billion euros or about C$10.9 billion when it was first confirmed on June 25. The bid has grown to C$11.3 billion because of the falling Canadian dollar.
– With files from The Canadian Press