Canada’s Agrium reaffirms desire for CF

16 April 2009 16:18  [Source: ICIS news]

HOUSTON (ICIS news)--Canadian fertilizer company Agrium said on Thursday it was committed in its effort to acquire US rival CF Industries.

In a letter to CF CEO Stephen Wilson, Agrium CEO Michael Wilson said that Agrium was willing to increase its offer if CF could demonstrate additional value. The chief executives are not related.

Agrium had offered to purchase all of the common stock of CF for $35 (€27) in cash plus one Agrium common share for each CF common share.

CF’s officials have rejected the offer. In a 9 April letter to shareholders, 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.

CF's Stephen Wilson sent a letter to Terra CEO Mike Bennett on Tuesday asking why Terra would not discuss CF's takeover bid.

Agrium’s Michael Wilson said he wondered why CF questioned Terra’s apparent lack of interest in being acquired by CF.

“How can you, on the one hand, question why Terra won’t engage in merger discussions with CF, while on the other hand, you refuse even to discuss our higher premium offer?” Michael Wilson said in his letter to CF's Stephen Wilson.

Agrium said it is offering a multiple for CF that is 37% higher than that proposed by CF for Terra.

($1 = €0.76)

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By: Frank Zaworski
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