Reuters reports that Sinochem has dropped out of the Potash Corp. of Saskatchewan Inc. battle. Sinochem had been exploring the idea of a group bid for Potash Corp., even hiring bankers to advise on options, but has not managed to pull together a group that can make a bid to top BHP Billiton Plc.
One of the key issues for Sinochem, a source told The Globe and Mail, is that Ottawa has refused to tip its hand on whether Canada would approve a bid from China. Going ahead with a plan that could be denied approval is too risky a gambit in Chinese internal politics.
HSBC drops talks to buy African bank stake
HSBC PLC said that talks to buy a large stake in African lender Nedbank have failed. Banks are eyeing Africa as a back-door play on China because China is behind so much activity in Africa. HSBC said it's still looking for ways to grow in Africa.
Seagate looks at LBO (Again)
For the second time in the past 10 years, Seagate Technologies may become the target of a leveraged buyout by TPG Capital. KKR & Co. and TPG Capital are in talks to buy the hard-disk maker for about $7.55-billion, according to reports. Seagate's announcement that it was looking at a proposal (but giving no names) sent other disk makers higher as well.
$100 (U.S.) oil from OPEC?
It appears more and more like OPEC is going to seek $100 a barrel oil to offset the slide in the U.S. dollar, in which the commodity is priced. OPEC may not have to cut production to get there, given that Goldman Sachs Group Inc. predicts that global surpluses of oil will soon be run down and oil prices will trend "substantially higher" as a result, according to Bloomberg.