Saskatoon-PotashCorp last week remained under scrutiny as either a buyer of another potash property or a target of another company wanting to break into the business. In both instances, the company had no comment, as it does not respond to rumors. As noted last week, there was speculation that PotashCorp might be interested in again bidding for Germany’s K+S Group; however, its attempt in the 1990s failed due to regulatory concerns. This week there was renewed speculation that the company might again become a target of a large international mining company such as BHP Billiton, which is anxious to move into the potash market. The thinking is that BHP might find it easier to buy a curent producer than develop its own reserves in Canada. Weaker potash prices have heightened this speculation as sources say it would take much higher potash prices to justify building a new mine. Others, however, say either PotashCorp or The Mosaic Co. would be large investments, even for BHP.
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