Canada’s Agrium extends bid for CF Industries

Canadian fertilizer giant Agrium Inc said Friday that it has once again extended the cut-off time for its unsolicited takeover bid for the US fertilizer major CF Industries Inc by one more month, up to 22 March 2010.

Agrium started its hostile bid for CF Industries about a year ago (See: Hostile bid for Terra lands CF Industries in Agrium's crosshairs) which was subsequently sweetened several times, and continuously rejected by the CF Board on the grounds that the offers were further away from being compelling than had they ever been.

Agrium's latest bid values CF Industries at around $5.4 billion, offering CF shareholders $45 in cash and one Agrium share for every CF share held.

In the meantime, CF Industries had been on hot pursuit for the acquisition of rival Terra Industries which turned futile as Terra last week decided in favour of Norwegian fertilizer giant Yara International ASA. (See: Norway's Yara to acquire US rival Terra for $4.1 billion)

Agrium president and CEO Mike Wilson said: ''The recent Yara merger agreement with Terra illustrates the important benefits of being part of a larger, global company. We believe CF will recognize this as well, despite the fact that CF has so far ignored a clear mandate from its own shareholders to execute a mutually beneficial merger agreement with us.

''We continue to believe that Agrium and CF combined will create an excellent company and deliver significant value for all stockholders,'' Wilson added.