Sask Potash Inc., a fertilizer producing company, was recently the recipient of a takeover offer from Australia's BHH Mining Ltd. Sask Potash fought back saying the bid significantly undervalued their shares and they urged shareholders not to tender their shares and the government to block the bid. What type of market efficiency does Sask's board of directors believe in and why might the government not allow the takeover to go forward?

Question

Quizplus · Accepted Answer

Sask's board likely believes the market is inefficient, as they argue the bid undervalues their shares. The government might block the takeover if it sees no benefit to Canada, possibly due to strategic interests or economic impacts.