Tendered CF Shares For Agrium Bid Slump In Past Month

   DOW JONES NEWSWIRES 
 

CF Industries Holdings Inc. (CF) shareholders pulled back their tendered shares in droves the past month as Agrium Inc. (AGU) said it would continue a takeover effort of its fellow fertilizer maker.

Agrium had threatened to walk away from its $3.7 billion buyout effort if a sufficient number of CF holders didn't show support by a June deadline. As such, 62% of CF shares were tendered in support of the deal and Agrium said it would continue to pursue a takeover.

But Agrium said on Monday as it extended its tender offer another four weeks, just 10.4 million shares were tendered and not withdrawn as of 5 p.m. EDT Monday. That compares with last month's total of 30.1 million; there are about 49 million CF shares oustanding.

Agrium President and Chief Executive Mike Wilson didn't comment on the sharp drop in a statement disclosing the tender-offer extension. But he did say his company is "fully committed" to completing a deal.

CF has repeatedly rejected Agrium's approaches, instead pushing for a takeover of a third fertilizer company, Terra Industries Inc. (TRA). But Terra has repeatedly said no to CF.

Agrium shares closed Friday at $40.64 while CF finished at $72.98. The stocks were inactive premarket. Agrium's offer is one of its shares and $35 for each share of CF.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; [e-mail]