CF rejects latest Agrium offer as too cheap

CF's board rejects Agrium's offer

Calls offer too cheap

LOS ANGELES, May 15 (Reuters) - U.S. fertilizer maker CF Industries Holdings Inc (CF.N) rejected on Friday a roughly $4.2 billion acquisition by Canadian rival Agrium Inc (AGU.TO), as being too cheap, and stood by its own plan to take over Terra Industries (TRA.N).

The U.S. company, which has repeatedly spurned Agrium's advances, said the latest offer of $40 cash per share and one Agrium share for each CF share was "not in the best interests of CF and shareholders." [ID:nWEN9244]

Agrium, which made a similar offer to shareholders in February but raised the cash portion of its bid to $35 a share from $31.70 a month later, has tried to meet with CF management to no avail.

CF, for its part, has launched its own takeover bid for Terra, and accuses Agrium of trying to derail that deal. [ID:nN11504828]

The company said the latest offer did not take into account increases in its own cash position since the initial bid, and a 36.9 percent in the average share price of its peer group as stock markets rallied.

"Agrium has not significantly changed the terms of its offer since it was first made and the board believes that the offer continues to substantially undervalue CF Industries," CF CEO Stephen Wilson said in the statement.

Agrium executives were not available for comment.