Agrium to scrap CF deal unless shareholders tender

Agrium Inc. Chief Executive Officer Mike Wilson said his company will abandon its proposed takeover of CF Industries Holdings Inc. if investors don't offer a "compelling majority" of shares in a tender offer.

Agrium today reaffirmed its bid of $40 a share in cash plus one Agrium share for each share of Deerfield--based CF Industries and extended the expiration date on the bid to midnight New York time on June 22 from June 15.

"If we fail to receive a compelling majority, we will conclude we do not have sufficient support from CF stockholders and will walk from the transaction," Wilson said today in a statement.

CF and Agrium are vying to become the dominant North American producer of nitrogen-based fertilizers that farmers use to increase yields. CF has rejected Calgary-based Agrium's offers as inadequate and pursued its own proposed takeover of Terra Industries Inc.

Any combination of two of the three companies would create the world's second-largest publicly traded nitrogen-fertilizer maker after Yara International ASA of Norway.

CF fell $3.09, or 3.9 percent, to $76.82 at 9:57 a.m. in New York Stock Exchange composite trading. The shares rose 62 percent this year through yesterday.