Fertilizer-maker Agrium Inc. (AGU) has raised its takeover bid for smaller rival CF Industries Holding Inc. (CF). The company has increased its exchange offer for acquiring all of the outstanding shares of CF Industries to $92.99 per CF share based on Agrium’s closing stock price on Nov 4, 2009. Under the terms of the offer, stockholders would receive $45.00 in cash − an increase of $5.00 or 12.5% in the cash consideration − and one common share of Agrium for each CF share.  According to Agrium, this offer provides a premium of over 67% to CF’s closing price as on Feb 24, 2009, the day before Agrium made its first bid, and about 84% to CF’s 30-day volume weighted average price. Agrium has extended the expiration date of the exchange offer to Nov 18, 2009.  However, CF rebuffed Agrium’s offer, alleging substantial undervaluation of the ...

Agrium Inc. (AGU) reported adjusted net earnings of 29 cents per share in the third quarter of 2009, missing the Zacks Consensus Estimate of 32 cents. Year over year, earnings declined a significant 87% on lower volumes and prices. Revenues were down 41% year over year to $1.9 billion on weak corn prices and lower consumption of crop protection products at retail level.  Retail segment: Retail segment revenues plunged 25% to $1.2 billion in the quarter on a 41% decline in crop nutrient sales to $345 million due to a significant decline in crop nutrient prices. Crop nutrient volumes in the quarter remained flat. Gross profit from the crop nutrients business almost halved to $31 million. Crop protection sales were $768 million in the quarter, down 12% from the same period last year. The decline was driven by lower volumes for fungicides and lower pricing for glyphosate products. ...

For Immediate Release

Chicago, IL – September 30, 2009 – Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week’s analysis include Agrium (AGU), CF Industries (CF), Intrepid Potash (IPI), Mosaic (MOS), Potash of Saskatchewan (POT) and Market Vectors Agribusiness (MOO).

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

This week: Fertilizer's Farming Problem

Hostile takeover attempts have kept fertilizer companies in the news. The acquisition talk has helped to overshadow a negative trend that should have investors concerned - ongoing cuts to full-year profit forecasts.

During the past 90 days, the Zacks Consensus Estimates have been revised downwards on several fertilizer companies, including Agrium (AGU), Intrepid Potash (IPI), Mosaic (MOS) and Potash of Saskatchewan (POT).

The most recent cuts were related to a warning from POT. The company predicted

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Hostile takeover attempts have kept fertilizer companies in the news. The acquisition talk has helped to overshadow a negative trend that should have investors concerned - ongoing cuts to full-year profit forecasts.

During the past 90 days, the Zacks Consensus Estimates have been revised downwards on several fertilizer companies, including Agrium (AGU), Intrepid Potash (IPI), Mosaic (MOS) and Potash of Saskatchewan (POT).

The most recent cuts were related to a warning from POT. The company predicted that its full-year profits would be in the range of $3.25 to $3.75 per share, instead of the prior guidance of $4 to $5 per share. The company blamed "continued slow demand and limited restocking by fertilizer distributors" as the reasons for the revised forecast.

All Is Not Well on the Farm

The big reason why profit projections for fertilizer companies have been falling is not weaker demand for fertilizer,

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Calgary-based Fertilizer Company Agrium Inc. (AGU) has again extended its deadline for its hostile offer of $3.9 billion to buy out rival CF Industries Holdings Inc. (CF). Agrium has stretched the deadline to August 19 from the previous deadline of July 22, stating that only about 21% or 10.4 million shares of CF Industries have been tendered and not withdrawn from the exchange offer as of July 17, 2009.

On June 23, CF’s shareholders had tendered about 62% of their total outstanding shares in support of Agrium's current offer of $40 plus one Agrium share per CF share. This was at 59% premium to CF's closing price on February 24, 2009, when the offer was made. Soon after the tender results, Agrium had extended the deadline to acquire CF Industries to July 22, 2009.

CF had repeatedly rejected Agrium’s takeover offer. Despite two upward revisions in the offer price, CF

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Potash Producers Hopeful About Rising DemandA recent study conducted by the International Fertilizer Industry Association (IFA) has suggested a possible pick-up in fertilizer demand by the second half of this year. This led most of the fertilizer giants such as Potash Corp of Saskatchewan (POT), Intrepid Potash (IPI), Terra Industries (TRA), Agrium (AGU) and CF Industries (CF) to witness a surge in their stock prices.Since late 2008, the fertilizer industry has been adversely affected by slackening demand. Lack of confidence, limited access to credit, and lower grain prices led farmers to either defer fertilizer purchases or reduce application rates. Consequently, as the study showed, fertilizer consumption fell 14% in the first half of this year.Notwithstanding, the potash cartel (accounting for ...

For Immediate Release

Chicago, IL – March 26, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CF Industries Holdings Inc. (CF), Agrium Industries (AGU), Terra Industries (TRA), Star Bulk Carriers Corp. (SBLK) and General Mills, Inc. (GIS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Wednesday's Analyst Blog:

CF Industries Lowered to Hold

CF Industries Holdings Inc. (CF) is one of the largest manufacturers and distributors of nitrogen and phosphate fertilizer products in North America. The company's operations are organized into 2 business segments: the nitrogen fertilizer

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CF Industries Holdings Inc. (CF) is one of the largest manufacturers and distributors of nitrogen and phosphate fertilizer products in North America. The company's operations are organized into 2 business segments: the nitrogen fertilizer and the phosphate fertilizer.The company is in the midst of being acquired by Agrium Industries (AGU) or buyout of Terra Industries (TRA). However, there is weak demand and pricing in the interim period.As a result, we rate the shares a Hold and set a target of $70.00. Currently, CF Industries Holdings is valued at 8.6x our 2009 estimate of $7.91. Our target price is 8.9x our 2009 estimate. Read the full analyst report on "CF"Read the full analyst report on "AGU"Zacks Investment Research

CF Industries Holdings Inc. (CF) has leading market shares in many key fertilizers. Strong domestic and international grain markets have produced an exceptionally high global demand for fertilizer, translating into substantially higher selling prices for all the products. The company is optimistic about its phosphate business where the market is expected to remain tight near term due to healthy offshore demand growth in India and Brazil as well as higher application rates in the U.S.

In addition, the company is likely to benefit from the proposed nitrogen facility in Peru, which will address the nitrogen demand on the west coast of Central and South America as well as Mexico, which does not have any nitrogen facility.

The company is in the midst of either being acquired by Agrium Industries or bought out by Terra Industries. As a result, we maintain our Buy rating of the stock and set a target of

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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

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