CF Industries Turns Down Agrium

DEERFIELD, Ill. (TheStreet) -- CF Industries(CF Quote) should know how Agrium(AGU Quote) feels.

The Deerfield, Ill., fertilizer outfit has, yet again, rejected a takeover bid from rival Agrium, saying that the proposed terms "substantially undervalue the company." Earlier this week, of course, CF received its own spurning at the hands of its intended target, the Sioux Falls, Iowa-based agricultural products company Terra Industries(TRA Quote).

On Thursday, Agrium offered up a sweetened bid for CF, increasing the bid's value to about $4.5 billion.

In a written statement, CF boss Stephen Wilson said, "Agrium's latest revised offer is very far from compelling" and went on to add, "we will continue to execute our long-term strategy, including the company's offer to acquire Terra Industries."

Shares of CF climbed slightly in Friday's early going, trading at $80.17, up 27 cents; Agrium gained 2.8% to $51.19; and Terra rose 1% to $36.35.

The attempted dealmaking comes as the fertilizer industry struggles through one its most depressed moments in recent memory, with demand for crop products collapsing amid the recession. Just two weeks ago, Agrium warned Wall Street that profit would continue to plunge in its third quarter, falling as much as 95% from a year ago.

-- Written by Scott Eden in New York

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