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CF Industries Rejects Another Agrium Takeover Bid

The Associated Press

NEW YORK (AP) — CF Industries Holdings Inc.'s board of directors has rejected another takeover bid from Agrium Inc., saying the offer undervalued the company.

CF turned down the deal Friday, four days after Agrium sweetened its offer to $40 in cash and one share of Agrium for each CF share.

Agrium had previously offered $35 and one share of Agrium per CF share. The Canada-based agricultural products company has been trying to buy CF for months, but its advances have been repeatedly rejected.

Deerfield, Ill.-based CF, which produces and distributes fertilizer products, said the offer of $40 per share is only 58 cents above the $4.42 per share increase in CF's cash position during the first quarter.

CF noted the overall stock market was up significantly since Agrium made its first offer, with the average stock price for CF's peer group increasing nearly 37 percent since late February. With the latest revised offer, the nominal value of Agrium's offer has increased by 22.5 percent since it was first made, CF said.

"The board believes that the offer continues to substantially undervalue CF Industries," said Stephen R. Wilson, chairman and chief executive of CF Industries.

CF has been trying to strike a deal to take over Terra Industries Inc. of Sioux City, Iowa, but has faced repeated rejections.