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Prospect News home > News index > List of issuers A > Headlines for Agrium Inc. > News item
Published on 11/6/2009 in the Prospect News Special Situations Daily.

CF Industries rejects Agrium's 'far from compelling' revised offer

By Lisa Kerner

Charlotte, N.C., Nov. 6 - CF Industries Holdings, Inc.'s board of directors turned down Agrium Inc.'s revised offer to acquire the company's outstanding shares because it "substantially undervalues the company."

"Agrium's latest revised offer is very far from compelling," said CF Industries chairman, president and chief executive officer Stephen R. Wilson in a company news release.

On Thursday Agrium announced its best and final offer for CF Industries - $45.00 cash per share plus one common share of Agrium for each CF Industries share.

The per-share offer price was valued at $92.99 per CF Industries share based on Agrium's closing stock price on Wednesday.

As previously reported, Agrium increased the cash consideration by 12.5%, or $5.00 per share.

Agrium previously announced it was extending its exchange offer for CF Industries shares to midnight ET on Nov. 18 from Nov. 13.

Agrium, a Calgary, Alta., fertilizer company, began its unsolicited exchange offer in March 2009 for CF Industries after CF Industries rejected its offer in favor of pursuing a deal with Terra Industries, Inc.

Terra rejects CF Industries

Terra president and CEO Michael L. Bennett recently urged his company's shareholders to reject CF Industries' latest offer to acquire the company for $32.00 per share in cash plus 0.1034 of a share of CF Industries for each Terra share.

The Sioux City, Iowa, nitrogen products company's board of directors unanimously rejected CF Industries' latest offer as well as several prior proposals.

Bennett also urged shareholders to reject CF Industries' director nominees at Terra's annual meeting on Nov. 20.

Deerfield, Ill.-based CF Industries Holdings is the holding company for CF Industries, Inc., a producer and distributor of nitrogen and phosphate fertilizer products.


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