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8 years ago
UPDATE 3-Agrium extends CF bid deadline to January
December 21, 2009 / 2:15 PM / 8 years ago

UPDATE 3-Agrium extends CF bid deadline to January

2 Min Read

* Extends offer for CF Industries until Jan. 22

* Has 'highly confident' letters from two banks

* CF says bid 'further away from being compelling'

* Agrium shares up 2.6 pct; CF dips 0.2 percent (Adds share prices, CF comment)

TORONTO, Dec 21 (Reuters) - Canadian fertilizer producer Agrium Inc (AGU.TO) extended its hostile bid for rival CF Industries (CF.N) on Monday and said it was sure it would have the money needed to complete the purchase.

Calgary, Alberta-based Agrium said its $45-per-share cash-and-stock offer for the U.S. company would now expire on Jan. 22. It had been scheduled to expire on Dec. 18.

Agrium also said it had replaced its financing commitments with "highly confident" letters from Royal Bank of Canada (RY.TO) and the Bank of Nova Scotia (BNS.TO).

A condition of Agrium's offer is that the company has sufficient funding as well as cash on hand to purchase the outstanding shares and pay other expenses.

CF, which has been fending off Agrium's overtures since February, is itself locked in a hostile campaign to acquire U.S. fertilizer maker Terra Industries TRA.N.

Agrium's $5 billion bid is contingent on CF dropping its takeover offer for Terra.

Earlier this month Agrium said it planned to nominate a slate of directors to stand for election at CF's 2010 annual shareholder meeting.

In a separate release on Monday, CF said Agrium's offer was "further away from being compelling than it ever has been."

Shares of Agrium rose 2.6 percent to C$63.72 on the Toronto Stock Exchange, while CF was down 0.2 percent at $86.28 on the New York Stock Exchange.

$1=$1.05 Canadian Reporting by Scott Anderson, additional reporting by Matt Daily in New York; Editing by Lisa Von Ahn

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