DOW JONES NEWSWIRES
Agrium Inc. (AGU) extended its nearly $4.4 billion tender offer
for CF Industries Holdings Inc. (CF) another week, but investor
demand so far has been muted.
As a result, Agrium President and Chief Executive Mike Wilson
warned, "If we fail to receive a compelling majority, we will
conclude we do not have sufficient support from CF stockholders and
will walk from the transaction."
Just 1.5 million CF shares have been tendered thus far; there
are 49.1 million outstanding.
CF had no immediate comment. The company's board and management
have repeatedly rebuffed Agrium's approaches, instead backing a
planned takeover of fellow fertilizer company Terra Industries Inc.
(TRA).
The jockeying for position comes as fertilizer producers look to
take advantage of the drop in sector stock prices since last summer
to buy up production capacity ahead of an expected rebound in
prices.
Agrium is offering $40 and one share of its stock for each share
of CF. That values CF at $89.01, an 11% premium to Tuesday's
closing price.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com