CF rejects Agrium offer

CF Industries Holdings Inc. (NYSE:CF) again spurned a takeover bid from fertilizer giant Agrium Inc. (TSX:AGU), which last week sweetened its offer for the U.S. nitrogen producer.

CALGARY — CF Industries Holdings Inc. (NYSE:CF) again spurned a takeover bid from fertilizer giant Agrium Inc. (TSX:AGU), which last week sweetened its offer for the U.S. nitrogen producer.

Deerfield, Ill.-based CF called Agrium’s cash-and-stock offer Monday “grossly inadequate” and “not in the best interest as shareholders,” even after the cash portion of the deal was increased more than 10 per cent on Friday to US$35 per share.

Calgary-based Agrium also offered one of its common shares for each CF share.

Based on Agrium’s closing share price prior to the takeover offer, the value of the deal rises from $72 per share to $75.30 per share.

CF vowed to keep pursuing its hostile bid for Sioux City, Iowa-based Terra Industries Inc. (NYSE:TRA), which has rejected CF’s overtures.

Agrium has argued that a CF-Terra combination isn’t in the best interest of shareholders and is making its offer conditional on CF dropping its plans.

But CF chief executive Stephen Wilson said Monday that “we strongly believe that continuing to pursue our long-term strategy, including our proposed business combination with Terra Industries, is the best way to do so.”

When Agrium announced it was raising the cash portion of the offer Friday, it suggested that it may further sweeten the deal if CF could demonstrate how more value would be created.

On an analyst conference call Friday, Agrium CEO Mike Wilson declined to say how much higher Agrium would go, but dismissed CF’s view that a $100-per-share bid would be accretive to Agrium in 2010.

“The $100 per share is la-la land,” said Dundee Securities analyst Richard Kelertas.

“We believe that Agrium will pay anywhere from 10 to 15 per cent more than their initial offer of $72 and then if they cannot get CF they will walk away . . . I know Mike Wilson, I know the discipline and I also know that he’s not going to play a cat-and-mouse game for very much longer.”

Agrium announced Friday that it has filed materials with the U.S. securities regulator, urging shareholders to withhold their votes for board nominees at CF’s annual meeting April 21. Its tender offer to CF shareholders expires May 19.

Just Posted

Number of seniors who play bridge in Red Deer growing

Red Deer Bridge Club has been around for close to 60 years

PHOTOS: Buccaneers battle Wolfpack in AFL semifinal

The Central Alberta Buccaneers battled the Calgary Wolfpack in the Alberta Football… Continue reading

Raising awareness for Bikers Against Child Abuse

Second annual Raise A Ruckus Against Child Abuse was held at the Red Deer Radisson Hotel Saturday

Central Alberta Yogathon cancelled Saturday

Due to air quality concerns the fourth annual event will take place Sept. 15

City Hall Park construction begins next week

Construction to update Red Deer’s City Hall Park is set to begin… Continue reading

WATCH: Medicine River Wildlife Centre opens new playground

The grand opening of the playground was Saturday morning

Indonesia’s Lombok island jolted by multiple quakes

SEMBALUN, Indonesia — Strong earthquakes jolted the Indonesian tourist island of Lombok… Continue reading

Afghan president calls for Eid cease-fire, Taliban to reply

KABUL — Afghan President Ashraf Ghani has called for a conditional cease-fire… Continue reading

Montreal may have less influence after October provincial election

MONTREAL — When Coalition Avenir Quebec Leader Francois Legault recently dismissed the… Continue reading

Privacy issue with online pot sales after legalization needs watching: experts

TORONTO — Buyers who have to provide personal information to purchase recreational… Continue reading

Range of reactions to possible holiday to mark legacy of residential schools

The federal government’s intention to enact a statutory holiday aimed at remembering… Continue reading

Wildfire smoke from B.C. gets in the way of mountain scenery for tourists

JASPER, Alta. — Smoke from wildfires that’s blanketing parts of Alberta does… Continue reading

Fast food chains look to capitalize on vegetarian, vegan trend with new items

The once meat-dominated world of fast-food and casual restaurants is starting to… Continue reading

Thousands to attend funeral service for officers killed in Fredericton shooting

FREDERICTON — Hundreds of people have lined the route of a funeral… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month