Potash Corporation of Saskatchewan confirmed Wednesday that it has held talks with Israeli government officials about increasing its stake in Israel Chemical Ltd.
However, the fertilizer giant said no deal has been formulated.
"There is no assurance that a deal will be reached, or that parties will sign an agreement," the company said in a brief statement.
PotashCorp declined further comment.
The Canadian company sought to increase its stake in ICL earlier this year from about 14 per cent to 25 per cent, but dropped its attempt in the summer after delays in the government review process.
PotashCorp chief executive Bill Doyle said in June that the company decided to withdraw its offer both because the deal was taking a "very long time" and because ICL's terms weren't clearly defined, adding that PotashCorp would reappraise its options.
Shares in ICL, which were briefly halted in trading on the Tel Aviv Stock Exchange, were up five per cent, to give the company a stock market value of about $15.1 billion.
Although PotashCorp holds a 14 per cent stake, it does not have any seats on the ICL board. Israel Corp. owns roughly a 52.3 per cent interest.
Shares in Israel Corp., the country's largest holding company, were up nearly six per cent. In addition to ICL, Israel Corp. has investments in energy, transportation, shipping and technology.
Israel Corp. said Potash-Corp held a meeting with Israeli Prime Minister Benjamin Netanyahu in connection with a possibility for a potential merger deal.
A takeover deal would face significant regulatory hurdles.
