BHP Billiton's hostile takeover bid for Potash Corp has taken a setback with a law suit being filed against it by Potash.
The Canadian company is trying to stop the mining firm from completing its $40 billion takeover as it feels that $130 a share is too low a price.
In the law suit it stated that BHP Billiton's bid is built on false and misleading statements and omissions. Potash Corp has also alleged that the mining giant is trying to drive down its share prices and wants a 60 day freeze on any moves made by BHP Billiton.
Melbourne, Australia based BHP Billiton has dismissed the lawsuit as entirely without merit. The statement released in response to the lawsuit stated that the company would contest it vigorously. It also said that while Potash Corp's actions seek to deprive its shareholders of a fully financed all cash offer, they did not believe that the lawsuit would delay their offer.
Both parties have been hostile towards each other ever since Kloppers met Bill Doyle near Chicago in August this year. U.S. analysts see the latest move as a some what aggressive move to try and hold off BHP Billiton until a possible rival bid from China can be made.