Chinese and other investors have approached at least one big Canadian pension manager about a bid for Canada's Potash Corp to rival BHP Billiton's $39 billion hostile offer.
The disclosure by Alberta Investment Management Corp, which manages some US$67 billion in public sector pension funds, is one of the first pieces of hard evidence to back up speculation that China is looking for a way to derail a takeover of Potash Corp by the powerful Anglo-Australian miner. AIMCo said it was not interested, because the economics did not work.
China's state-owned chemicals giant Sinochem has reportedly hired HSBC to evaluate options, and rumours persist that sovereign wealth funds, such as China's $300 billion China Investment Corp, may also be seeking a bid of some kind.
Given the size of the deal, all major investment banks not working with BHP or Potash Corp are pitching possibilities to Chinese clients, investment banking sources in Asia have told the Reuters news agency.
But so far, no formal counter bid has emerged. The hefty price tag is still prohibitive for many potential suitors, bankers say.
The possibility of Chinese involvement in a valuable Canadian resource has raised concerns in Saskatchewan, which is worried that a takeover of its largest company by a foreign firm or major customer could affect jobs and government revenue.
