* K+S discussed state intervention with minister-paper
* Stake purchase by state development bank discussed-paper
* Nationalisation seen as unlikely
(Adds source on KfW not acting as white knight)
FRANKFURT, July 29 (Reuters) - German potash and salt miner
K+S SDFGn.DE has turned to economy minister Sigmar Gabriel for
help in resisting an unwanted takeover approach by Potash Corp
of Saskatchewan Inc POT.TO , and has discussed the option of
German state bank KfW taking a stake in K+S, a newspaper
reported on Wednesday.
K+S earlier this month rebuffed Potash Corp's 7.9 billion
euros ($8.7 billion) proposed bid of 41 euros per share as too
low and suggested the suitor was planning to shrink the company.
K+S last week said it had rejected a new attempt by its
Canadian suitor, which is due to report second-quarter results
on Thursday, to entice it into takeover talks. ID:nL8N0ZI34D
ID:nL5N1013XE
KfW could take a blocking minority stake but Germany's
economy ministry and finance ministry are doubtful they could
come up with a "common-good" justification for such an
intervention, Handelsblatt cited people familiar with the matter
as saying.
K+S declined to comment while the economy ministry only said
there had been talks with the company about a "corporate matter"
and would not comment further.
A person familiar with the matter told Reuters that state
development bank KfW had never before acted as a "white knight"
to scupper a takeover and was unlikely to play such a role.