Agrium's Aggravation

Hostile bidder's stock slides as CF tells it to get lost (again). Terra, CF's target, drops as well.

Agrium can’t take rejection. Instead of walking away from its unsolicited bid for U.S. fertilizer producer CF Industries Holdings the Canadian fertilizer company keeps banging its head against the wall trying to get CF to agree to its offer.

But CF Industries Holdings (nyse: CF - news - people ) won’t, preferring instead to try to acquire rival Terra Industries (nyse: TRA - news - people ), which is just as uninterested in CF's bid as CF is in Agrium.

Agrium's shares were the big losers among the three stocks on Monday, falling more than 8.0%, a possible indication that its shareholders fear it will raise its bid for CF.

Late Sunday, CF rejected Agrium (nyse: AGU - news - people )’s revised $3.7 billion offer as “grossly inadequate.”

Earlier this month, CF turned down Agrium's original bid as inadequate and sweetened its own offer for Terra. Agrium’s bid is conditional on CF dropping its offer for Terra. (See "Investors Side With Agrium.")

On Friday, Canada-based Agrium increased its offer to $35.00 per share, plus one common share. (See “Fertilizer Bids Keep Growing.”) The cash component of the previous offer had been $31.70. (See "Agrium Tries To Woo CF Industries.") Its bid is now worth $70.19 per CF share, and it has suggested that it might raise that in a friendly deal.

CF has insisted that it is worth $100.00 per share. Chief Executive Stephen R. Wilson said the company continues to believe that pursuing its long-term strategy, which includes its proposed takeover of Terra Industries, is the best way forward.