Agrium extends hostile bid for CF Industries

Fertilizer giant Agrium Inc. has extended the expiry date on its $3.9-billion-US hostile takeover bid for rival CF Industries Holdings Inc. of Deerfield, Ill., until midnight Aug. 19.

Agrium, based in Calgary, said Monday about 10.4 million shares of CF common stock had been tendered as of last Friday's market close, representing about 20 per cent of CF's outstanding shares.

The proposed deal exchanges $40 US in cash plus one Agrium share for each CF share. The offer had been set to expire on June 22.

CF's board of directors has repeatedly rejected Agrium's overtures, but Agrium has extended the offer deadline several times.

"Despite the fact that CF continues to ignore a clear mandate to conclude a transaction, we will continue to press CF to execute a mutually beneficial merger agreement," CEO Mike Wilson said in a release.

Among CF's objections to the deal is its contention that Agrium is making the offer to quash CF's own hostile bid for rival Terra Industries. Agrium's offer is conditional on CF dropping its pursuit of Terra.

"Our offer remains far superior to any alternative articulated by CF, including remaining independent or paying a premium for Terra," Wilson said.

Agrium's original offer of $35 US plus one Agrium share for each CF share was rejected by CF's board. In early May, Agrium sweetened the offer by $5 US a share.

Shares of Agrium closed up 12 cents to $45.30 on the Toronto Stock Exchange, while CF shares gained 68 cents to $73.66 US on the New York Stock Exchange.