Canada’s Agrium takes plea to CF shareholders

12 November 2009 22:21  [Source: ICIS news]

HOUSTON (ICIS news)--Having been repeatedly spurned by CF Industries's board of directors, retail fertilizer major Agrium took its takeover message directly to CF shareholders on Thursday.

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.

($1 = €0.67)

For more on fertilizers visit ICIS pricing fertilizers
To discuss issues facing the chemical industry go to ICIS connect

By: Frank Zaworski
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index