By paNOW Staff

PotashCorp makes pledge to Saskatchewan

Oct 13, 2010 | 5:05 PM

Sarah Mills

CJME

PotashCorp has made a pledge to Saskatchewan, which it hopes will bring it and the people of Saskatchewan some benefit as it fights a hostile takeover by BHP Billiton.
PotashCorp says the pledge would maintain the status quo for the province. It is interested in having any potential new owner commit itself to the pledge.
The pledge includes the guarantee that PotashCorp or any future owner would have a large corporate presence in Saskatoon. Premier Brad Wall agrees with that guarantee saying, “All the senior officers should be in the province of Saskatchewan if it is a head office.”
But such promises from PotashCorp won't necessarily mean the government would support or not support a takeover bid — by BHP Billiton or any other company.
The pledge includes the guarantee that PotashCorp or any future owner would have a large corporate presence in Saskatoon. It is also committing to Canpotex as well as a strong aboriginal workfore. Buying locally and helping Saskatchewan communities is also part of the pledge as is continuing PotashCorp's expansion projects.
Wall insists his main goal is to ensure that whatever happens, the people of Saskatchewan get the benefit.
“I do believe there is a chance now for the province of Saskatchewan, regardless of what happens with this takeover, to exert some influence over this particular takeover and extract some benefits for the province,” said Wall.
PotashCorp is hoping to engage in a friendly takeover, one that would trump the existing bid on the table from Australian giant BHP Billiton.