Source: The Canadian Press

The Toronto stock market moved higher Wednesday as Potash Corp. (TSX:POT) shares ran ahead on expectations of an improved takeover offer while the base metals sector gained ground on higher copper prices and hopes that more resource companies will be snapped up with big share price premiums.

The S&P/TSX composite index climbed 52.44 points to 11,781.08 while the TSX Venture Exchange rose 6.37 points to 1,469.97.

Investors also took in news late in the session that General Motors has filed its first batch of paperwork for an initial public offering of stock with the U.S. Securities and Exchange Commission. GM will list on the New York Stock Exchange and the Toronto stock market.

The Canadian dollar moved up four-tenths of cent to 97.21 cents US.

Shares in Potash Corp., which is the sixth most heavily-weighted company on the TSX, ran up another three per cent to $151.75 as Australian resource giant BHP Billiton said it would take its US$38.6-billion takeover offer for the Saskatchewan fertilizer company directly to shareholders.

Shares in Potash rocketed 26 per cent Tuesday as it rejected the unsolicited offer of US$130 a share, calling it grossly inadequate.

“There’s obviously going to have to be a better offer,” said Luciano Orengo, portfolio manager at MFC Global Investment Management.

“The consensus seems to be US$170 for Potash is kind of what would be expected in the upper range. (But) the premium won’t be as high had there been other contenders. There’s not many deep pockets out there that could step up.”

The base metals sector gained almost one per cent with September copper in New York ahead one cent at US$3.35 a pound. The gain added to Tuesday’s 4.5% rise, which reflected hopes for other merger and acquisition deals in the resource group. Taseko Mines (TSX:TKO) rose 20 cents to C$4.79 while Sherritt International (TSX:S) gained 44 cents to C$6.96.

Gold stocks were positive as bullion prices shook off early losses to move up $3.10 from Tuesday’s six-week high to US$1,231.40 an ounce. Barrick Gold Corp. (TSX:ABX) climbed 62 cents to C$46.50.

The financial sector also lifted the TSX with Scotiabank (TSX:BNS) ahead 59 cents to $51.09.

But shares in Manulife Financial Corp. (TSX:MFC) slipped six cents to $12.60 after the insurance giant said it plans to issue nearly $900 million in unsecured senior notes just weeks after it posted a $2.4-billion loss in its second quarter. Spokesman David Paterson said the company is “taking advantage of low interest rates to improve its debt rates while it can.”

The TSX energy sector lost 0.76% after the U.S. Energy Information Administration said oil inventories declined by 800,000 barrels, short of the decline of 2.25 million barrels that had been forecast.

Also, gasoline inventories were virtually unchanged.

“Petroleum stocks are at an all time high,” observed Orengo. “There are a lot of people on their couch and not in their cars going to work.”

The benchmark crude for September delivery was down 35 cents at US$75.42 a barrel on the New York Mercantile Exchange.

Canadian Natural Resources (TSX:CNQ) fell 43 cents to C$34.31.

New York markets also added to strong gains as earnings from retailer Target Corp. were better than the market expected.

The discount retailer met analysts’ forecasts for its second-quarter earnings and beat expectations for revenue. Its shares gained $1.23 to US$51.91 in New York.

The Dow Jones industrial average climbed 9.69 points to 10,415.54.

The Nasdaq composite index gained 6.26 points to 2,215.7 while the S&P 500 index was up 1.62 points at 1,094.16.

In other corporate news, Deere & Co. says its third-quarter profit grew 47% as American and Canadian farmers bought enough of the company’s agricultural equipment to offset weak demand in Europe. The company generated US$617 million in net income, or $1.44 per share, in the quarter. That’s up from $420 million, or 99 cents per share, a year ago. Deere says global revenue spiked 16% to US$6.84 billion but its shares were off $1.25 at US$65.98.

CoolBrands International Inc. (TSX:COB) says it has reached an agreement to merge with American hygiene and sanitation solutions company Swisher International Inc. in a share-swap transaction worth $102.9 million. Once the transaction is completed, CoolBrands shareholders will own about 52% of Swisher, with the remainder in the hands of other investors. CoolBrands shares gained seven cents to $1.85.