$500m for Potash's Doyle if BHP wins
Potash Corporation chief executive Bill Doyle could be richer by $US445.4 million if BHP Billiton's hostile bid succeeds.
Doyle is reported to hold $3.43 million shares and options in his corporation. The shares and a termination payment would give him the close to $US500 million. The Canadian executive will need to increase his bid above $US150 a share to win over Potash's shareholders.
Potash continued a steady climb in the US stock market today. It is closing up US91c, or 0.6 per cent, to $US148.84. The amount is now 14.5 percent higher than BHP's $US130 bid.
Analysts are speculating that the Saskatchewan-based company would rely heavily on a global consortium formed through multinationals.
Talks with the Russians are also being eyed as a possible recourse to prevent a BHP takeover. An increased market control by the Russians from 55 percent to 62 percent would not tilt the supplier and buyer market power. China and India are two of the largest consumers of potash.
A BHP ownership of Potash would threaten the market power of other suppliers. Potash delivery contracts are not listed on an exchange, while benchmark prices are dictated by a consortium of Canadian potash producers that market through a partnership called Canpotex.
BHP chief executive Marius Kloppers said he would honour the commitments of the Canpotex partners, but that he prefers to market its own products and get market clearing prices. Canpotex accounts for about 40 per cent of the global potash trade.