Agrium Chief Blasts CF
Seizing an opportunity to cash in on shareholder frustration, Mike Wilson claims that “CF refuses to meet.
June 29, 2009
Following a referendum by CF Industries Holdings’ shareholders that encouraged the Deerfield, Illinois-based fertilizer company to take a more receptive tact in responding to Agrium Inc.’s takeover approaches, attacks have intensified.
Growing increasingly frustrated with CF’s resistance, Agrium chief executive and president Mike Wilson said the firm has rebuffed his attempt to discuss an acquisition. In a statement, Wilson claimed, “Contradicting recent public comments that CF is prepared to engage, [CF’s chairman and chief executive Steve Wilson] 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."
In a Sterne Agee analyst report obtained from ThomsonOne Analytics earlier this month, CF was described as “uncharacteristically playing with fire.”
Agrium bid $3.6 billion for CF in February, and raised its bid to about $4.18 billion, or $35.00 in cash and one common share of Agrium, after CF rejected the initial bid and called Agrium's offer “grossly inadequate.”
In March, CF made a hostile bid for Terra, a move that Sterne Agee analyst Mark Connelly said “has put [CF] into a complex situation whose outcome is far less controllable than previous strategic moves.”
In a March, Oppenheimer analyst Joseph Gomes said Agrium could afford to pay $100 per share of CF without making the deal dilutive.
In May 2008, Agrium bought UAP Holding Corp., a crop protection products distributor.
Calls placed to Agrium and CF Industries were not returned by press time today. As of midday Monday, Agrium stock traded at $47.61, and CF Industries stock traded at $75.79 per share.
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