DOW JONES NEWSWIRES
Three CF Industries Holdings Inc. (CF) directors up for
re-election were backed at the company's annual board meeting,
signaling an endorsement of the fertilizer company's direction
during an ongoing three-way battle in the sector.
The jockeying for position comes as fertilizer producers look to
take advantage of the drop in sector stock prices since last summer
to buy up production capacity ahead of an expected rebound in
prices.
On Tuesday, CF Chief Executive Stephen Wilson reiterated his
commitment to acquiring rival Terra Industries Inc. (TRA) and the
company's effort to rebuff Agrium Inc.'s (AGU) takeover bid.
On top of its effort to sweeten its $3.07 billion bid for Terra,
CF has been on the defensive as rival Agrium last month boosted the
cash portion of its $3.6 billion offer for CF. Agrium has been
actively looking to build shareholder backing for the takeover
while CF has continually urged that holders reject Agrium's bid,
saying the deal was "grossly inadequate."
Agrium, the largest of the three companies by revenue, had urged
CF shareholders to withhold their votes on the election of
directors and tender their shares to Agrium's exchange offer "to
send a clear message to the CF board." Agrium launched an exchange
offer to CF shareholders last month, which is set to expire at May
19, and on Tuesday reaffirmed its plans to acquire CF.
Last week, CF said a proxy advisory firm had recommended that
CF's shareholders vote for its three board members to remain on the
board. The board results follow a preliminary vote count announced
by CF.
Terra, meanwhile, has rejected a takeover offer from CF three
times. Terra Chairman Henry Slack and Chief Executive Michael
Bennett said the latest $30.50-per-share bid, offered in late
March, "substantially undervalues" the company and would deliver
less value than Terra would achieve independently. In response, CF
launched a proxy contest to replace three Terra directors at its
annual meeting, which had been scheduled for May but was delayed by
Terra.
CF's shares were up 1.5% to $68.33 in recent trading, as
Agrium's shares rose 0.9% to $39.35. Terra's shares rose 0.4% to
$27.32.
-By John Kell, Dow Jones Newswires, 201-938-5285,
john.kell@dowjones.com