FRANKFURT (Reuters) - German fertilizer producer K+S SDFG.DE is confident it will be successful in its planned takeover of Canada’s Potash One KCL.TO, the company’s chief executive told a German paper.
Asked whether the takeover would be successful, K+S CEO Norbert Steiner told Frankfurter Allgemeine Sonntagszeitung in an interview published on Sunday: “We think so, as we have made an attractive offer.”
K+S in late November said it was planning to buy Potash One for C$434 million ($431.8 million).
“But the takeover is not a done deal yet, our offer to Potash One shareholders runs until January 18, 2011,” he said.
Steiner added, however, that about 21 percent of Potash One shares had been tendered so far and that he was confident K+S would succeed in securing at least two thirds of the shares.
K+S’s offer came only weeks after Canada blocked a $39 billion hostile bid by BHP Billiton (BHP.AX) for Potash Corp POT.TO, the industry’s dominant player.
Steiner confirmed the company’s 2010 outlook for earnings before interest and tax (EBIT) of 630-670 million euros ($839-892 million), but remained tight-lipped about a potential dividend for the year.
“As a rule of thumb, we pay out 40-50 percent of adjusted net profit,” he said. “The decision will be made in March 2011.”
K+S is scheduled to release 2010 full-year results on March 10, 2011.
(Reporting by Christoph Steitz; Editing by Mike Nesbit)
($1=1.005 Canadian dollar)