×

BHP Awaits Approval on Bid for Potash

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening, I'm Saijal Patel from CNBC and you're watching “Asia Market Daily”.

It's a big week for BHP Billiton - with the Canadian Federal government widely tipped to approve its hostile bid for Canadian fertilizer giant Potash, by Wednesday's deadline.

However, it's likely to impose strict conditions on the $39 billion dollar offer - which BHP is reportedly planning to sweeten.

CNBC's Matt Taylor has the story.

=

Thanks very much Saijal.

As the deadline looms for the Canadian government to approve BHP's $39-billion bid for Potash reports suggest the miner is considering lifting its offer by around 10 percent.

This is according to a report in the Sunday Times Newspaper which says BHP's CEO Marius Kloppers is looking to up the miners $130-a share offer by 10 percent. But this may not come until after a November 8 deadline for a court case that could resolve the poison pill plan adopted by Potash to try and thwart the bid.

Under the conditions of the current offer. Potash shareholders have until November 18th to accept the current price. But this will likely have to be extended, if the offer price is raised.

This week the Canadian Federal government is also set to approve the takeover deal - despite widespread opposition to the plan within Potash and also in the Canadian province in which it operates.

But will an increase of 10 percent be enough to get the deal across the line? A 10 percent increase would put the Potash bid around $143 a share - which is slightly below where Potash is trading right now. Back to you.

=

Thanks Matt.

That's the latest “Asia Market Daily”. I'm Saijal Patel from CNBC, enjoy the rest of your night.

All Rights Reserved. A Division of NBC Universal.