08/07/2015 04:32 EDT | Updated 08/07/2016 05:59 EDT

PotashCorp Takeover Offer Rejected Again By German Fertilizer Producer


CALGARY — Potash Corp. of Saskatchewan Inc. has once again been rejected by K+S AG about its multibillion-dollar takeover offer despite revising its bid for the German fertilizer producer.

K+S AG said Friday on its website that PotashCorp sent an unsolicited letter which included a business combination agreement to address the interests of workers and local communities. But it said the offer of 41 euro per share, the same price as before, was still too low.

"We are still convinced that the proposed price of 41 euro per share does not at all reflect the fundamental value of K+S," Norbert Steiner, CEO of K+S, said in a statement.

"This is true for our existing business but in particular for the value contribution of our Legacy project," he added, referring to the company's potash development in southern Saskatchewan that is expected to begin production in mid-2016.

K+S AG did not elaborate on the details of the business combination agreement, but said it "offers no reliability."

"They are foiled by far-reaching restrictions in essential parts and are not effectively enforceable," the company said.

K+S has expressed concerns about job losses and mine closures if PotashCorp takes over the company.

PotashCorp confirmed it sent a letter and draft business combination agreement to K+S but would not discuss what was proposed.

The proposed takeover offer valued K+S at about 7.85 billion euros or about C$10.9 billion when it was first confirmed on June 25. But since then, the bid has grown to C$11.3 billion because of the falling Canadian dollar.

Last week, PotashCorp president and CEO Jochen Tilk said the takeover proposal isn't based on job cuts, mine closures or selling K+S's salt business, adding that PotashCorp was prepared to make binding commitments.

Tilk also committed to going ahead with K+S' Legacy potash project and exporting its production through Canpotex.