BHP (NYSE:BHP) Officially Drops Potash (NYSE:POT) Bid

After the protection from the Canadian government produced conditions which no company could meet concerning the acquisition of Potash Corp. (NYSE:POT), BHP (NYSE:BHP) officially dropped their bid for the fertilizer giant.

"BHP Billiton Officially abandoned its bid for POT after it decided that conditions imposed by Canadian authorities could not be satisfied. Now that the deal is scrapped, POT will resume trading on fundamentals. While POT has nearly $25/share in hidden value from its equity investments, we believe that value is likely to remain unrealized until POT decides to sell these strategic stakes; their value is partially reflected in POT's premium valuation relative to its peers...Based on our current 2011 estimates, we believe the share price could range from $118-$145 based on an EBITDA basis or $130-$164 based on a P/E basis," said Gleacher & Co., who maintains a "Neutral" on Potash.

Potash closed down Monday, ending at $137.21, losing $2.64, or 1.89 percent. BHP closed at $87.69, gaining $0.72, or 0.83 percent.