Potash, Barrick Gold, Husky Energy May Rise; CIBC May Decline

By John Kipphoff

Sept. 12 (Bloomberg) -- Potash Corp. of Saskatchewan Inc. may rise, based on bids on the Toronto Stock Exchange, after the biggest fertilizer maker announced plans to buy back more shares and commodity prices increased.

Barrick Gold Corp. may advance as bullion and copper rallied. Husky Energy Inc. may climb along with prices of gasoline and crude oil. Canadian Imperial Bank of Commerce may decline, bids indicated, as Lehman Brothers Holdings Inc. fell in U.S. pre-market trading on concern that the investment bank may not find a buyer fast enough to shore up capital.

The Standard & Poor's/TSX Composite Index rose 0.9 percent to 12,612.76 yesterday in Toronto. Canada's main equity benchmark, down 1.6 percent in four days, is poised for a second-straight weekly loss.

The S&P/TSX, which derives more than three-quarters of its value from energy, materials and financial stocks, has fallen 16 percent from its June 18 record as falling commodity prices, and doubts about the stability of the U.S. financial system combined to stoke investor concern that a global recession is looming.

Potash Corp. may advance for a third day, adding C$2.10 to C$164.10, bids already submitted in Toronto showed. The largest maker of crop nutrients by market value said its stock is undervalued and that it plans to double its buyback program by purchasing as many as 15.68 million additional shares, or about 5 percent of its outstanding common equity.

The company already bought 15.82 million shares this year, according to a statement on Canada NewsWire.

``Our shares are significantly undervalued versus our long- term potential,'' Bill Doyle, Potash's chief executive officer, said in the release. Doyle owned 328,5000 Potash shares as of Sept. 4, according to Bloomberg data.

Barrick Gold, the world's largest bullion producer, may gain C$1.32 to C$30, bids suggested. Teck Cominco Ltd., Canada's biggest diversified mining company, may rise 72 cents to C$36.45, according to bids.

Gold, copper, soybeans and wheat gained. Oil rose from a five-month low as Hurricane Ike headed toward the Texas coast, home to 23 percent of U.S. refining capacity, shutting almost all Gulf of Mexico oil production as it passes.

Husky Energy, the oil and gas producer controlled by Hong Kong billionaire Li Ka-shing, may add 90 cents to C$43, based on bids. Canadian Oil Sands Trust, the largest oil-sands producer in the world, may rise 48 cents to C$43.25, bids suggested.

Lehman fell 12 percent in early trading in New York. Chief Executive Officer Richard Fuld is seeking buyers for the investment bank amid signs that the U.S. government may balk at providing the funding that enabled Bear Stearns Cos. to sell itself and avoid bankruptcy.

Canadian Imperial, the nation's fifth-largest lender, may fall C$1.17 to C$63.02, bids indicated. Royal Bank of Canada, the biggest, may drop 81 cents to C$49.15, based on bids.

U.S. stock-index futures extended declines after a government report showed retail sales unexpectedly decreased in August.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.