Agrium committed to hostile takeover of Deerfield-based CF Industries

Agrium Inc., North America's third- largest fertilizer producer, said it's committed to completing a hostile bid to acquire CF Industries Holdings Inc.

Agrium's bid values CF at $70.44 a share, based on today's closing price for Agrium in New York trading, or about $3.41 billion. Deerfield-based CF yesterday reiterated a recommendation to its shareholders to reject Agrium's "grossly inadequate" offer of one Agrium share, plus $31.70, for each share of CF.

"We're committed to the deal," Ashley Harris, a spokesman for Calgary-based Agrium, said today in a phone interview. "Our feedback from CF shareholders has been positive," he said, declining to elaborate.

Agrium, the largest retailer of seeds, pesticides and fertilizers to U.S. farmers, is seeking a bigger share of U.S. and Canadian production and distribution of phosphate and nitrogen-based nutrients used to boost crop yields. Agrium's bid is complicated by CF's proposed takeover of Sioux City, Iowa- based Terra Industries Inc., also a maker of fertilizer.

"Combined, CF and Terra would have an improved strategic platform from which to pursue growth and to manage risk," Stephen R. Wilson, CF's chief executive officer, told investors and analysts on a conference call yesterday.

Agrium rose 1.3 percent to C$47.90 at 4:15 p.m. on the Toronto Stock Exchange. CF Industries gained 1.6 percent to $72.30 in New York. Terra rose 0.6 percent to $27.58.

Terra's board today rejected CF's latest offer of about $30.50 for each Terra share, depending on CF's share price, as "inadequate" and "counter to Terra's strategic objectives." CF's offer values Terra at about $3.05 billion.

Potash Corp. of Saskatchewan Inc. and Mosaic Co. are North America's largest fertilizer producers by market value.