27 March 2009 14:52 [Source: ICIS news]
Under the new terms, CF shareholders would receive $35 (€26) in cash plus one common share of Agrium for each CF share.
The latest cash offer represented an increase of $3.30/share, or 10.4%.
Agrium also said that it had filed proxy materials with the Securities and Exchange Commission (SEC) in connection with its effort to elect three nominees to the CF board of directors.
“Agrium’s increased offer reflects our firm commitment to completing this transaction,” said Agrium CEO Mike Wilson.
Wilson said Agrium would consider increasing its offer further to reflect any additional value that the CF board and management could demonstrate arising from the combination of the two companies.
CF has rejected earlier takeover bids from Agrium based, in part, on the idea that Agrium’s retail operations would not create synergies with CF’s fertilizer manufacturing operations.
At the New York Stock Exchange, Agrium traded at $38.64/share in early trading, down 3.2% on the news. Meanwhile, CF traded at $73.50/share, down 0.7%.
($1 = €0.74)
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