DOW JONES NEWSWIRES 
 

Agrium Inc. (AGU) said Monday that its raised $4.18 billion offer to buy rival fertilizer maker CF Industries Holdings Inc. (CF), which was rejected late Friday, provides more value to shareholders that CF's proposed buy of smaller U.S. Terra Industries Inc. (TRA).

The jockeying for position comes as fertilizer producers look to take advantage of the drop in sector stock prices since last summer to buy up production capacity ahead of an expected rebound in prices. The three-way tussle, now in its fourth month, has seen CF reject Agrium's approaches, and cast them as an effort to disrupt its own pursuit of Terra and prevent consolidation in the wholesale fertilizer sector.

Agrium, the largest of the three companies by revenue, last week boosted the cash portion of its offer for CF to $40 a share from its previously sweetened bid of $35. The stock portion of one share of Agrium to one share of CF remains the same.

All three companies' shares were unchanged from Friday's close in premarket trading. Agrium's shares closed at $48.18, CF's were at $79.75 and Terra's ended at $28.26.

Agrium Chief Executive Mike Wilson said Monday the sweetened offer, which is a 59% premium to CF's closing share price on Feb. 24, the day before its initial offer was made, "delivers more value to CF stockholders than any of the strategic alternatives articulated by CF, including remaining independent or acquiring Terra Industries."

Agrium has repeatedly urged CF shareholders to support its offer. It said last week that as of midnight May 8, 1.3 million of CF's 49.1 million shares outstanding had been tendered.

CF's board rejected the offer Friday. Chairman and Chief Executive Stephen R. Wilson said Agrium hasn't significantly changed the terms of its offer, which the board believes continues to "substantially undervalue" CF.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com