Agrium To Terminate Offer For CF; Offer Expires March 22

Agrium Inc. (AGU) announced late Thursday that it has decided to terminate its long-standing hostile offer for fellow fertilizer company CF Industries Holdings Inc. (CF), allowing the offer to expire at midnight on March 22.

Agrium had offered one Agrium share and $45 in cash for each CF share, contingent on CF abandoning its own bid for Terra Industries Inc. (TRA).

On Wednesday, however, Terra announced that it favors CF's hostile offer for it over a friendly bid for Terra by Yara International ASA (YAR.OS) and offered Yara the chance to sweeten its $4.1 billion cash offer or walk away with a $123 million break-up fee.

CF pursued Terra for more than a year, dropping its interest in January before re-emerging when Yara announced its bid in February. CF had been the subject of a takeover offer by Agrium for almost as long, though CF had repeatedly rebuffed Agrium in favor of its offer for Terra.

Agrium said Thursday that it "will continue to focus on the significant growth opportunities available to us globally across the agricultural value chain."

In New York Thursday, Agrium closed down 2.0% at $66.78.

-By Tara Zachariah, Dow Jones Newswires; 416-306-2100; [e-mail]

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