DOW JONES NEWSWIRES
CF Industries Holdings Inc. (CF) shareholders pulled back their
tendered shares in droves the past month as Agrium Inc. (AGU) said
it would continue a takeover effort of its fellow fertilizer
maker.
Agrium had threatened to walk away from its $3.7 billion buyout
effort if a sufficient number of CF holders didn't show support by
a June deadline. As such, 62% of CF shares were tendered in support
of the deal and Agrium said it would continue to pursue a
takeover.
But Agrium said on Monday as it extended its tender offer
another four weeks, just 10.4 million shares were tendered and not
withdrawn as of 5 p.m. EDT Monday. That compares with last month's
total of 30.1 million; there are about 49 million CF shares
oustanding.
Agrium President and Chief Executive Mike Wilson didn't comment
on the sharp drop in a statement disclosing the tender-offer
extension. But he did say his company is "fully committed" to
completing a deal.
CF has repeatedly rejected Agrium's approaches, instead pushing
for a takeover of a third fertilizer company, Terra Industries Inc.
(TRA). But Terra has repeatedly said no to CF.
Agrium shares closed Friday at $40.64 while CF finished at
$72.98. The stocks were inactive premarket. Agrium's offer is one
of its shares and $35 for each share of CF.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com