CF Industries Holdings Inc. rejected the latest revised takeover proposal from Agrium Inc., calling the deal price inadequate
The Deerfield, Ill., holding company /quotes/comstock/13*!cf/quotes/nls/cf (CF 79.75, +2.07, +2.66%) for a producer and distributor of nitrogen and phosphate fertilizer products said in a statement that the latest revised proposal from Agrium "continues to substantially undervalue the company and is not in the best interests" of the company and its shareholders.
On May 11, Agrium, /quotes/comstock/13*!agu/quotes/nls/agu (AGU 48.18, +1.26, +2.69%) the Calgary, Alberta, retailer of agricultural products and services and producer of nutrients for agriculture and industry, said it boosted the cash part of its bid for CF by $5 a share.
The latest proposal offers CF holders $40 cash plus 1 Agrium share for each of their shares. Based on Agrium's closing price on Friday, the deal values CF at $88.18 a share, or $4.33 billion, based on 49.1 million shares outstanding at March 31.
The takeover battle began in February, when Agrium proposed to pay $72 a share, or $3.6 billion, for CF.
In its Friday statement, CF said the board decided that the company's best path is to continue its current strategy, including its proposal to acquire Terra Industries, /quotes/comstock/13*!tra/quotes/nls/tra (TRA 28.36, +0.29, +1.03%) the Sioux City, Iowa, producer and marketer of nitrogen products for agriculture and industry.
Terra has rebuffed CF's proposal to pay 0.4235 share for each of Terra's shares. On Thursday, Dow Jones Newswires reported that Terra Chief Financial Officer Dan Greenwell said the company would consider growth via acquisition and might resume its share buyback.
Morgan Stanley and Rothschild are advising CF Industries.
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