Agrium Inc. (AGU) announced late Thursday that it has decided to
terminate its long-standing hostile offer for fellow fertilizer
company CF Industries Holdings Inc. (CF), allowing the offer to
expire at midnight on March 22.
Agrium had offered one Agrium share and $45 in cash for each CF
share, contingent on CF abandoning its own bid for Terra Industries
Inc. (TRA).
On Wednesday, however, Terra announced that it favors CF's
hostile offer for it over a friendly bid for Terra by Yara
International ASA (YAR.OS) and offered Yara the chance to sweeten
its $4.1 billion cash offer or walk away with a $123 million
break-up fee.
CF pursued Terra for more than a year, dropping its interest in
January before re-emerging when Yara announced its bid in February.
CF had been the subject of a takeover offer by Agrium for almost as
long, though CF had repeatedly rebuffed Agrium in favor of its
offer for Terra.
Agrium said Thursday that it "will continue to focus on the
significant growth opportunities available to us globally across
the agricultural value chain."
In New York Thursday, Agrium closed down 2.0% at $66.78.
-By Tara Zachariah, Dow Jones Newswires; 416-306-2100;
tara.zachariah@dowjones.com
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