Agrium Inc. said Tuesday it extended the deadline to acquire rival fertilizer company CF Industries Holdings Inc. after 62 percent of CF shareholders tendered their shares to the deal valued at more than US$4 billion.
The offer, which expired at midnight Monday, has been extended to July 22.
"CF stockholders have sent a resounding message to CF's Board that they support Agrium's offer," Agrium President and CEO Mike Wilson said in a statement."These are extraordinarily strong results, particularly given that CF's poison pill and other defense mechanisms are still in place and we urge CF's Board to respect this clear message from its stockholders."
Deerfield, Ill.-based CF Industries reiterated Tuesday that it thinks Agrium is undervaluing the company.
"Contrary to Agrium's assertions, the tender offer results do not change the facts that Agrium's offer substantially undervalues CF Industries, our shareholders do not support the price in the offer, and the offer has significant regulatory issues," said Stephen R. Wilson, chairman, president and CEO of CF Industries.
The company's board and management have consistently rebuffed Agrium's takeover attempt, despite two increases to its original bid. Last week, Agrium threatened to walk away if a "compelling majority" of CF Industries shareholders didn't show their support for a deal.
Canada-based Agrium is offering $40 per share, as well as a one-for-one share swap, an offer that it says represents a 59 percent premium to CF's closing price before the offer was first made public on Feb. 24.
RiskMetrics Group, an advisory firm, has recommended CF Industries' shareholders approve a deal with Agrium.
Meanwhile, CF Industries is trying to buy another fertilizer company, Terra Industries Inc., and has launched a fight to unseat that company's board. The Sioux City, Iowa, company has repeatedly rejected CF Industries' advances.
Shares of Agrium gained $1.85, or 4.8 percent, to close at $40.74, while CF Industries shares jumped $3.56, or 5.1 percent, to $72.88.
Terms & Conditions
RSS Headlines
Fool UK