Potash Withdraws K&S Offer, Glencore to Sell Agriculture Assets

Nigel Thomas
05 Oct, 2015
New York City

Potash Corp withdrew its

[R]4:00 PM Frankfurt – Potash Corp withdrew its €7.85 billion offer to acquire Germany-based K&S. Glencore is looking to sell some of its agricultural assets and reduce the debt. Thales secured contracts from Australian government for $916.4 million. Ryanair traffic in September surged 12%.[/R]

In London trading, FTSE 100 index jumped 151.86 or 2.5% to 6,281.75 and in Frankfurt the DAX index increased 275.58 or 2.9% to 9,828.65.

In Paris, CAC 40 index soared 156.34 or 3.5% to 4,615.40.

Arnoldo Mondadori Editore SpA jumped 3.2% to €1 after the Italy-based print media and publishing company agreed to acquire book publishing unit from its domestic rival RCS Mediagroup EO 1 for about €127.5 million $143 million.

Bailey Acquisitions Limited, the Jersey-based real estate investment company lifted its cash offer to acquire the U.K.-based Quintain Estates and Development Plc for about 141 pence per share from 131 pence per share on July 29.

The offer values Quintain at £745 million.

Glencore Plc surged 13.5% to 107.80 pence after the Switzerland-based mining and trading company is in talk to sell some of its agricultural assets to reduce debt.

K&S AG plunged 25.9% to €22.95 after the Canada-based fertilizer producer Potash Corp of Saskatchewan, Inc. withdrew its €7.85 billion or $8.9 billion proposal to acquire the company.

Potash management considered the offer of €41 per share, a 59% premium to the K+S share price a year ago at the time of the first approach.

The offer is no longer financially viable after commodity prices declined nearly 40% in the period from the first offer.

Ryanair Holdings Plc gained 3.7% to €13.38 after the Ireland-based low fare airline said passengers traffic in September surged 12% to 9.55 million from 8.49 million and load factor increased 4% to 94% from a year ago month.

Thales SA increased 2% to €63.87 after the France-based defense and aerospace products provider secured contracts from Australian government to supply 1,100 light armored vehicles for its army for about $916.4 million or A$1.3 billion.

Thales said production is scheduled for the vehicles from mid-2017 and first deliveries are planned by the end of that year.