Agrium sweetens CF takeover bid again

NEW YORK -- Agrium Inc. on Monday sweetened its takeover bid for CF Industries, offering CF stockholders $40 in cash and one share of Agrium for each CF share.

Agrium had previously offered $35 per share and one share of Agrium per CF share.

CF on Monday said its board of directors will evaluate the revised proposal.

The Calgary, Alberta, agricultural products company has been trying to buy CF for months, but its advances have been repeatedly rejected as "grossly inadequate."

In March, Agrium took the deal directly to CF shareholders and urged them to withhold all votes in connection with the election of three nominees to CF's board of directors, a move to pressure CF Industries Holdings.

Stockholders of the fertilizer company withheld about 20 percent of votes, and Agrium vowed to continue the pursuit.

Meanwhile, the Deerfield, Ill.-based CF has been trying to strike a deal to take over Terra Industries Inc. of Sioux City, Iowa, but has faced repeated rejections.

Earlier, Terra rejected an offer by CF Industries Holdings Inc. to pay $30.50 for each Terra share with an exchange ratio between 0.4129 and 0.4539 of a CF share.

Most recently, CF Holdings has extended the expiration of its exchange offer for shares of Terra Industries Inc. until June 12. The offer had been set to expire May 15.

Shares of Agrium fell 77 cents to $44.43 in Monday premarket trading. CF shares climbed $3.19, or 4.3 percent, to $77. Terra shares closed at $25.41 on Friday.