DOW JONES NEWSWIRES
Leading proxy adviser RiskMetrics is recommending CF Industries
Holdings Inc. (CF) shareholders support Agrium Inc.'s (AGU) $4.4
billion tender offer, which to date has received muted investor
demand.
CF's board and management have repeatedly rebuffed Agrium's
approaches, instead backing a planned takeover of fellow fertilizer
company Terra Industries Inc. (TRA). The three firms are battling
for position in an industry that saw prices crumble in the latter
half of 2008.
Agrium President and Chief Executive Mike Wilson thanked
RiskMetrics in supporting its takeover effort. But as he warned two
weeks ago, Wilson said his company is prepared to walk away if CF
shareholders don't provide "a compelling majority," in support of
the deal. At that time, just 1.5 million CF shares were tendered;
there are 49.1 million outstanding.
Agrium is offering $40 and one share of its stock for each share
of CF. That values CF at $86.23, a 9.6% premium to Tuesday's
closing price.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com