Potash has filed suit in U.S. Distrct Court in Northern Illinois against BHP this morning, alleging that BHP's offer violates U.S. securities law by making misleading statements including BHP's stated plans for POT should it be successful. The suit also alleges that BHP's hostile bid is 'unsually coercive' given that it is structured to only require 50% of shareholders to approve the deal rather than the 2/3 normally required by Canadian law. Further, POT argues that BHP's widely publicized entrance into the potash market by developing mines in Saskatchewan and suggesting that they would run the mines at full capacity was an attempt to drive down potash prices and thus the price of POT stock to a level where it would be an attractive acquisition target. These are some pretty serious allegations...
Full filing available below.
http://sec.gov/Archives/edgar/data/855931/000095012310087970/o65249exv99wxaywx18y.htm
Does anyone still believe this deal will get done???
Finally, an addendum to yesterday's trade idea...If more time is preferred b/c you believe the offer could be extended into 2011, you could wait until October to purchase 2011 puts, allowing some of the Theta to bleed off in the meantime...
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