Agrium to nominate directors for CF board in 2010
03 Dec 2009
Agrium Inc has announced plans to nominate a slate of directors for CF Industries Holdings Inc's board next year even as it pursues its bid to take over the rival fertiliser producer.
The Calgary, Canda-based company said in a statement on Wednesday that it would nominate directors at CF's annual stockholder meeting in 2010.
CF repeatedly rejected Agrium's takeover bids earlier this year, and pursued its own hostile bid for Terra Inc. In February CF first launched its bid for Terra, but within weeks, in an unexpected turn of events found itself the target of a takeover bid by Agrium. (See: Hostile bid for Terra lands CF Industries in Agrium's crosshairs)
CF rejected Agrium's inititial bid of $3.4 billion in early March and subsequently spurned an improved offer. Agrium's second sweetened offer of $3.8 billion a week after it rejected Agrium's improved bid too failed to cut ice with the CF board which termed it as 'grossly inadquate'. (See: CF Industries reject Agrium bid, to continue to pursue Terra)
The board of directors of CF went on to recommend that stockholders reject Agrium's revised offer to acquire all outstanding shares of CF Industries.
Analysts say the stakes in the three-way battle are high with the result determining which company will become the world's second-largest publicly traded maker of nitrogen-based fertilisers after Yara International ASA of Norway. (See: CF Industries nixes Agrium's improved offer; sweetens own offer to Terra)
