CF Ignores Agrium's Tender Offer
After a compelling majority of CF Industries' shares were tendered by CF stockholders in support of Agrium's offer, CF has ignored the offer. | Agrium's comments.
June 29, 2009
Mike Wilson, Agrium's President and CEO, stated, "Following a successful stockholder referendum on Agrium's offer and after we reached out to CF and its advisors, CF's Chairman and CEO Steve Wilson told me that CF would not meet with Agrium. Contradicting recent public comments that CF is prepared to engage, he stated to me that 'there is no reason to meet because nothing has changed'. Steve Wilson said he called since stockholders wanted him to engage with Agrium. I do not consider returning my phone calls to say that CF refuses to meet to be engagement and I don't think CF stockholders will either."
Mike Wilson continued, "After a compelling majority of CF shares were tendered by CF stockholders in support of our offer, it is striking that CF would dismiss the results of the tender offer and refuse to make any effort to elicit additional value for their stockholders by engaging with us and demonstrating new value."
"As we explicitly stated publicly and directly to CF stockholders, tendering shares into our offer is an unambiguous message to CF's board in support of a transaction with Agrium. The simple fact is CF stockholders responded, and CF is ignoring them. A majority of CF's long-term holders sold off their position some time ago and the large majority of the remaining stockholders clearly support an Agrium/CF combination."
"We promised CF's stockholders that if we received a compelling majority in our June 22 tender offer we would press CF to engage with us to negotiate a mutually beneficial combination. We have reached out to the Chairman of CF's board and have been rebuffed."
Agrium remains committed to acquiring CF and is actively considering all available options to give the owners of CF the voice in the company they are entitled to.
Agrium's offer is not subject to a financing condition. Agrium has sufficient cash resources and committed financing underwritten by Royal Bank of Canada and The Bank of Nova Scotia to fund the cash portion of the offer.