Potash looks to escape BHP's grip
The fertilizer maker believes BHP's $40 billion takeover bid undervalues the company. So, it's looking for an investor group to buy the company. The government reports low inflation but a wider trade gap.
Potash shares were up 0.9% to $148.38. BHP was off 0.2% to $73.26 in New York.
BHP, the world’s largest mining company, has offered $40 billion, or $130 a share, for Potash, the world’s biggest fertilizer producer.
The interest in Potash reflects the assumption that global food demand will surge in the coming years because of economic growth in Asia and Latin America.
Potash's shares have been wildly volatile in the last fives, rising nearly 800% between the end of 2005 and June 2008. They're down 38% since.
Producer prices rise slightly
The Labor Department
also said its Producer Price Index increased 0.4% in August; economists
had expected a 0.3% increase. The index had risen 0.2% in July.
Core PPI, which excludes food and beverages, rose 0.1%, as expected, after climbing 0.3% in the previous month. The gains should ease deflation fears.
The Treasury Department said
the U.S. current account -- which registers both trade and capital
transactions -- recorded a wider deficit of $123.3 billion in the second
quarter. The figure was in line with expectations.
It also reported foreign net buying of $61.2 billion in U.S. stocks, bonds and financial assets in July. That suggested robust demand for U.S. assets. China remained the biggest investor in Treasurys.
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[BRIEFING.COM] Equities ended on their lows with the S&P 500 down 1.4%.
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
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