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Winnipeg Free Press - PRINT EDITION

Premier rebuffs BHP's advances

By: Kristine Owram and Jennifer Graham

Posted: 10/22/2010 1:00 AM | Comments: 0 (including replies)

THE Saskatchewan government came out firmly against BHP Billiton's US$38.6-billion bid to acquire PotashCorp Thursday, but the international mining giant said the company remains confident it can win over the province and get the deal approved.

Premier Brad Wall told a Regina business group he won't support the biggest takeover in Canadian history because the bid for the former Crown corporation and his province's biggest company provides no net benefit to Canada.

He also said it's a takeover attempt like no one has ever seen in Canada and and would continue a trend that has already seen much of the country's steel and mining sectors swallowed up by powerful multinationals.

"In the interest of jobs for Saskatchewan families, in the interest of the quality of life that we prize that's funded by revenue to government, in the interest of the place of our province and our country in the world, we must say no to this hostile takeover," he told the Regina Chamber of Commerce.

But Andrew Mackenzie, BHP's chief of non-iron ore operations, said he has by no means given up on the takeover.

"I'm engaging with the federal government to see how many of the commitments I've made thus far can be turned into binding undertakings, and I will take those undertakings and I will find ways of convincing the Saskatchewan government that those undertakings will be commitments written with real power and things that we will not disappoint on," Mackenzie said.

He added he's prepared to address Wall's concerns directly. But Wall said there's nothing BHP can do to make him change his mind. "We've made our case," he said.

Wall's speech came as reports circulated the federal government will approve the planned takeover if BHP Billiton meets Saskatchewan's concerns.

But Industry Minister Tony Clement denied the report that the government is prepared to approve the takeover if BHP agrees to "most of Saskatchewan's demands." Clement is scheduled to release his decision on Nov. 3.

"I have not made a determination," Clement said Thursday.

He added he won't let Wall's strong words sway him in either direction.

"I am neither a headwaiter to the premier of Saskatchewan, nor am I butler to the president of BHP."

On Wednesday, Prime Minister Stephen Harper told the House of Commons the hostile deal is not about the loss of a Canadian corporate champion. Harper said the fight for Potash Corp. is over "a proposal for an American-controlled company to be taken over by an Australian-controlled company."

Ralph Goodale, deputy Liberal leader and the party's only Saskatchewan MP, said there will be political fallout if Ottawa approves the deal despite the province's objections.

"There are going to be consequences if the prime minister effectively gives the premier a slap in the face," he said.

NDP Leader Jack Layton agreed, pointing out Wall is a conservative ally of Harper. "Even he recognizes ideology takes a backseat to basic math. And the numbers here don't add up for Canadians," Layton said.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition October 22, 2010 B4

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