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NEW YORK (TheStreet) — Potash Corp. of Saskatchewan(POT) shares notched a different 52-week high Wednesday after BHP Billiton(BHP) took its essay directly to shareholders of the Canadian fertilizer giant, transforming its invite into a hostile buyout attempt.

Investors clearly continue to believe that BHP power of determination increase its offer for Potash well above the initial $130 a contingent all-cash price (which values Potash at about $39 billion).

In some other session of hectic trading, Potash’s stock finished Wednesday at $147.93, up 3.3% from the foregoing close. Volume surpassed 25 million shares, compared with the name’s three-month medial sum daily turnover of 5.6 million.

On Tuesday, Potash announced that its committee had rejected an unsolicited offer made by BHP last week.

>>BHP-Potash Deal Seen at the same time that Inevitable

In a letter to Potash shareholders and in a crowd release, BHP, of course, urged investors to take the deal, arguing that its present price gives Potash holders “immediate liquidity and certainty of value concerning the company’s growth potential in the face of volatile fair play markets.”

The company also called its offer “fully funded.” According to Reuters, a cluster of six banks will underwrite a syndicated $45 billion loan instead of BHP should it and Potash strike a buyout deal.

Many are predicting that BHP resoluteness inevitably sweeten. Charles Neivert, a stock analyst at Dahlman Rose in New York who covers cultivation and chemical shares, predicts that BHP will eventually push its sacrifice price above $150 a share.

Others are bolder. Analysts at Citigroup and UBS accept targets of more than $170. Hari Sambasvia of the Canada’s National Bank Financial believes $180 is potential.

The relative lack of actively producing potash minds around the globe, combined with BHP’s stated to desire to enter this productive business, means the Australians will likely be willing to pay a reward for Potash Corp., these analysts say.

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Will BHP Win Potash? Vote in our deposit here

“We do not anticipate other bidders to enter the riot but expect a higher bid down the road,” Dahlman Rose’s Neivert wrote in a remark to clients Wednesday morning. “While we anticipate management to remain hesitant, we make no doubt of changes in the shareholder base subsequent to this announcement to spring in further dialogue with BHP.”

 

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