CF Industries Rejects Agrium Third Time

CF Industries Holdings, Inc. says that it has rejected Agrium’s third offer.

In an April 13 letter, the company outlines its stance to its stockholders.

To Our Stockholders:

Your Board of Directors and management team are committed to one thing — delivering value to stockholders.

We have proven our commitment with our performance. Since our IPO less than four years ago, our stock has risen over 350 percent, and we have been the best performing stock in our peer group. BusinessWeek just ranked CF Industries second among the 50 top performing S&P 500 companies measured over a three-year period. We returned $500 million of cash to our stockholders through an accelerated stock repurchase just this past fall, and we continue to pursue value-enhancing strategic initiatives such as our KEYTRADE investment, our project in Peru and our proposed business combination with Terra Industries.

It is because of our commitment to stockholder value that we have rejected Agrium’s offer. Agrium’s offer is grossly inadequate – nothing Agrium says changes that. We believe that, even absent Agrium’s offer, CF Industries shares would be trading well over $60 per share. Given this, Agrium’s offer with a nominal value of $75 (and lower trading value) is at a very low premium, particularly since it is almost half in cash. Recent premiums for cash transactions are nearly 90 percent and premiums for stock transactions are close to 35 percent.

If Agrium were serious about acquiring CF Industries:

  • It would have made a credible offer rather than a grossly inadequate offer at a very low premium.
  • It would have put up its own slate of directors for election, rather than letting the date pass for making nominations.
  • It would not have acquired a toe-hold stake in CF Industries stock, the only purpose of which could be to cover the expenses of a failed acquisition attempt.

These and other actions suggest that Agrium is more interested in derailing our proposed business combination with Terra Industries than in acquiring CF Industries for anything other than a bargain price.

Your Board will continue to focus on doing what is right for our stockholders. We appreciate your continued support of our efforts to build stockholder value at CF Industries. If you have any questions or need assistance in voting your shares, please contact Innisfree M&A Inc. toll-free at 877-456-3507.

On behalf of your Board of Directors,
Stephen R. Wilson
Chairman, President and Chief Executive Officer

(Source: PRNewswire)

Leave a Reply

Latest News
Stewardship4R Nutrient Stewardship Certification Program To Launch…
October 26, 2016
The 4R Nutrient Stewardship Certification Program will expand the voluntary retailer program to the full state of Ohio, allowing nutrient Read More
AGCO RG700 at the 2015 National Farm Machinery Show
EquipmentAGCO Parts Rolls Out No-Interest, No-Payments Offer Via…
October 26, 2016
AGCO Corp. is now offering an innovative financing solution on qualifying Parts and Service transactions. Now through December 31, 2016, Read More
Soybean field
Crop InputsIncotec Invests In North America
October 25, 2016
Leading seed enhancement company Incotec, part of Croda, has announced an investment in their North America business. The total investment of Read More
Patriot 25th anniversary
SprayersCase IH Celebrates 25 Years Of Patriot Sprayers At Bens…
October 24, 2016
Case IH executives, employees and special guests celebrated 25 years of production of Case IH Patriot sprayers in a special Read More
4r Nutrient stewardship
StewardshipNominations For The 4R Advocate Program Due October 31
October 24, 2016
Nominations for the 4R Advocate program are due to The Fertilizer Institute by October 31, 2016. The program recognizes agricultural Read More
Corn close up
Eric SfiligojProtecting Agriculture’s Ability To Feed The World
October 24, 2016
The rate of change coming to agriculture is growing, and will continue to do so for the foreseeable future. This Read More
Student Young Worker CHS
CropLife 100CHS Supports #FirstJob Compact
October 24, 2016
CHS joins the White House and many of the country’s largest employers in signing a new initiative centered on helping Read More
Kennebec Grain terminal
CropLife 100Wheat Growers Kennebec Facility Loads First Rail Cars
October 21, 2016
In a season of firsts for Wheat Growers’ Kennebec Grain Terminal, the first 115-car unit train was loaded with soybeans Read More
ManagementThe Latest Dow-DuPont Rumor, Product of the Year Voting…
October 20, 2016
CropLife Editor Eric Sfiligoj shares a new rumor about the Dow-DuPont merger and updates on two CropLife-driven programs, the CropLife Read More
Soybean Closeup
FungicidesFMC Begins Registration Process For New Fungicide Activ…
October 19, 2016
FMC Agricultural Solutions has begun the joint U.S. EPA and Canadian Pest Management Regulatory Agency registration process for bixafen, a new Read More
Soil Young Corn
Industry NewsAgribusiness Search Firm Appoints New Managing Partner
October 18, 2016
Morris Bixby Group, a leading agribusiness search firm providing the highest quality professional recruiting and career advancement services since 2000, Read More
Wheat Field North Dakota
FertilizerUnited Suppliers Acquires Kansas Fertilizer Business
October 17, 2016
United Suppliers, Inc. has purchased the assets of Evans Enterprises, LLC, an ammonium chloride fertilizer business based in Olathe, KS. Read More
Corn Field
Industry NewsFMC Launches New Operations In Argentina, Exits Joint V…
October 17, 2016
FMC Corp. has exited its joint venture with Ruralco Soluciones S.A. FMC has launched new commercial operations, FMC Quimica S.A., Read More
Dow AgroSciences
InsecticidesRenewed Registration Issued For Products Containing Sul…
October 17, 2016
On October 14, 2016, the U.S. EPA re-established the registration of products containing sulfoxaflor (Isoclast Active), including Transform WG, Closer Read More
Eric SfiligojThe Whys Of Agriculture
October 17, 2016
During 2016, there have been myriad challenges facing the whole agricultural industry. Such wide ranging issues as water protection, sustainable Read More
Young Corn Field
FertilizerImproved Phosphorus Management Essential To Feeding Wor…
October 14, 2016
With a global population expected to reach 9 billion people by 2050, improved management of key essential nutrients such as Read More
ManagementHarvest and Crop Price Updates; EPA and Crop Protection…
October 13, 2016
Glyphosate and atrazine get public comment support from ARA as each is reviewed by EPA, and the latest on the Read More
Matt Hopkins15 Twitter Accounts Every Ag Professional Must Follow
October 13, 2016
What do singer Katy Perry and the President of the United States have in common? They are two of the Read More