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Potash sure of better bids than BHP's

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Potash sure of better bids than BHP's

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Potash Corporation’s board has confirmed it is in talks with several potential buyers for a better price than BHP Billiton’s hostile 30 billion euro offer.

On that basis the company, which is the world’s largest producer of potash for fertiliser, urged shareholders to reject BHP’s bid.

Bloomberg is reporting that Potash has been contacted by China’s Sinochem Group and Brazil’s Vale.

Sinochem already has ties to Potash Corp as top Chinese fertiliser company Sinofert, a subsidiary of Sinochem, is 22 percent owned by Potash Corp.

China would have a strong interest in Potash Corp’s fate as it is the world’s largest importer of potash.

However, Sinofert may struggle to raise the cash to mount a full bid and regulators in Canada could also be unhappy with a Chinese state-owned group buying one of its flagship companies, analysts said.

Vale already has potash interests, but analysts said it does not have the money to take on BHP in a bidding war.