10 April 2009 16:47 [Source: ICIS news]
In a 9 April letter to shareholders on behalf of the board of directors, CF president and CEO Steve Wilson accused Agrium of not being serious in its takeover attempt and that Agrium was more interested in disrupting CF’s attempt to acquire rival Terra Industries.
With stock markets closed Friday for a holiday, CF shareholders had to wait until next week for market reaction to the company’s rejection of Agrium’s latest takeover offer.
“Agrium’s offer is grossly inadequate and nothing Agrium says changes that,” Wilson said in the letter to shareholders.
Wilson said that if Agrium were serious about acquiring CF, it would have made a better offer with a higher premium, would have put up its own group of directors for election and would not have acquired a “toehold” stake in CF stock.
“The only purpose in Agrium’s purchase of CF stock could be to cover the expense of a failed acquisition attempt,” Wilson said.
Agrium boosted the cash portion of its offer recently to $35/share from $31.70, plus one share of Agrium for each share of CF. The offer at the time valued CF at $74.90/share, which Agrium said was a 35% premium to CF's closing price the day before the offer was made.
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