Potash Corp Doubles Cash Dividend, Plans Three-For-One Stock Split

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DOW JONES NEWSWIRES



Potash Corp. of Saskatchewan Inc. (POT, POT.T) more than doubled its quarterly
cash dividend and approved a stock divided, giving every holder another two
shares for every one they own.


Shares were up 3% at $173.71 in New York after hours. The stock has climbed
53% in the last 12 months through the close.


Before the three-for-one stock split, Potash's quarterly cash dividend will
rise to 21 cents from 10 cents a share. After the split, it will be 7 cents a
share.


The cash dividend increase will cost the company about $32 million.


Chief Executive Bill said Wednesday the stock split will enhance the shares'
trading liquidity.


"The doubling of our dividend reflects the confidence we have in the long-term
drivers of our business and further commitment to using our strong cash flow to
create value for our shareholders," he said.


Anglo-Australian miner BHP Billiton Ltd. (BHP, BHP.AU) launched a failed $38.6
billion bid for Potash last year. The company had been under pressure to boost
its stock price after the Canadian government shot down that hostile takeover
bid. The government deemed Potash Corp.'s control over a large chunk of the
world's reserves of potash, a key crop fertilizer, of strategic interest to
Canada.



-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@
dowjones.com