TORONTO (miningweekly.com) – Shares in Canada's Potash Corp of Saskatchewan rose 5,7% on Monday, amid heightened speculation that the company could become a target for a larger company.

Bank of America Merrill Lynch analyst Jason Fairclough said in a note that the world's biggest miner, BHP Billiton, could afford to buy Potash Corp at a 30% premium, Bloomberg reported.

BHP has said it wants to expand its potash business and is already exploring a large land package in Canada's Saskatchewan and Manitoba provinces.

Potash Corp shares rose C$5,72 on Monday, to C$106,84 apiece by 16:10 in Toronto.

Rival Agrium Inc gained 6,4%, to C$58,90 a share.

In September, Potash Corp lowered its profit forecast for this year, because of weak potash sales.

The company expects full-year earnings of between $3,25 and $3,75 a share, compared with a July estimate of $4 to $5 a share, it said at the time.

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