12 November 2009 22:21 [Source: ICIS news]
CF shareholders should let the company's board know that they expect a premium for their investment, Agrium said. The shareholders should not pay out a premium - as the board is asking them to do through its takeover bid for rival Terra Industries.
On 5 November, Agrium increased its offer to acquire all of the outstanding shares of CF to $45.00 in cash and one common share of Agrium for each CF share. The offer brings the total of the bid to $4.9bn (€3.3bn), based on Agrium's closing stock price of $52.47 on 11 November.
Agrium's offer comes to a premium of over 75% to CF's closing price on 24 February, the day before it first announced its takeover bid, the company said. The premium jumps to 106% based on CF's 15 January price.
Since Agrium's initial proposal in February, the total value of Agrium’s offer has increased approximately $1.3bn, or 36%, Agrium chief executive Michael Wilson said in the letter to shareholders.
Agrium urged CF shareholders to tender their shares by 18 November.
“If we received your resounding support and CF refused to act, Agrium would consider all options, including litigation and nominating directors to the board,” Wilson said.
Nominating officers is the tactic CF is using in its attempted takeover of Terra.
CF has nominated three people for the Terra board, and proxy votes for that board election are due prior to Terra’s annual meeting on 20 November.
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