Fertilizer War: Agrium Takes Fight to CF

CALGARY, Alberta (TheStreet) -- Agrium(AGU), as expected, will pull a tactic from CF Industries'(CF) own playbook by nominating a slate of directors to stand for election at CF's annual meeting next year.

In its press release Wednesday morning, Agrium, which has been battling to take control of CF in a months-long hostile takeover attempt, also called for CF to stand down on its "poison pill" provision, which prevents would-be acquirers from taking hold of any shares tendered to it in a hostile tender offer -- unless the CF board first gives its approval.

Last month, when Agrium commenced just such a hostile offer, 63% of CF's shares were tendered. Agrium has since extended the offer's deadline to Dec. 18. CF has downplayed the idea that the tender was a de facto referendum on its shareholders' desire for an Agrium consummation, calling the 63% a "tepid" response.

Agrium had called its latest offer -- sweetened early last month -- its "best and final" one. That, evidently, remains to be seen, though some observers have wondered why Agrium waited so long to bring the proxy fight to CF's board. "Agrium's bid is heading for almost certain and deliberate failure," wrote Steven Davidoff in the New York Times not long after Agrium sweetened its terms.

The Canadian company's exchange offer includes $45 in cash plus one Agrium share for each CF share outstanding. As of Wednesday, with Agrium's stock trading at $59.27, the offer would value CF at more than $5 billion.