Monday March 16, 2009
Navivest

Agrium (AGU) today said that it has begun an exchange offer for all of the outstanding shares of CF Industries (CF). Under the terms of the offer, shareholders of CF Industries would receive $31.70 in cash and 1 common share of Agrium for each CF share they tender.

CF Industries shareholders also have the option to elect to receive 1.7866 common shares of Agrium or $72.00 in cash, subject to proration. However, not more than 44% of the shares tendered will be exchanged for cash and not more than 56% of the shares tendered will be exchanged for Agrium common shares.

The Offer and withdrawal rights are set to expire at 12:00 midnight New York City time on May 19, 2009, unless extended.

The exchange offer comes exactly a week after CF Industries rejected a previously announced $72/share, $3.6 billion takeover offer from Agrium that was announced on 02/25/09, claiming it is “grossly inadequate” and not in the best interests of CF Industries’ stockholders.

Agrium launched its takeover attempt, after CF Industries announced its own $2 billion offer for Terra Industries (TRA) on January 16 and the Agrium bid is seen as trying to prevent CF from becoming a much larger competitor. Agrium’s initial offer is conditioned upon CF Industries dropping its bid for Terra.

cf industries  agrium  terra industries