If BHP Billiton's Bid For Potash Corp. Is Approved, Saskatchewan Will Sue Canada

Saskatchewan might file a lawsuit against the federal government if Canada approves BHP Billiton Ltd.'s (NYSE: BHP) $40 billion hostile takeover offer for Potash Corp. of Saskatchewan, Inc. (NYSE: POT), Bloomberg reports.

Canadian Industry Minister Tony Clement plans to say whether Canada will allow the deal to proceed after markets close today. Saskatchewan believes the takeover will reduce provincial tax revenue by C$3 billion ($2.98 billion) over 10 years, lead to fewer jobs, and forfeit Canadian control of a strategic resource.

Bloomberg says that under the Investment Canada Act, the federal government can block any transaction valued at C$299 million or more if it finds the deal doesn't provide a net benefit to the country.