Agrium Ups Bid for CF Again

Agrium Increases Its Bid for CF Iindustries Again

Today, Agrium Inc. (AGU - Analyst Report) announced it is substantially increasing its exchange offer to acquire all of the outstanding shares of CF Industries Holdings, Inc. (CF - Analyst Report) to $85.20 per CF share based on Agrium's closing stock price on May 8, 2009. Under the revised terms, CF stockholders would receive $40.00 in cash, an increase of $5.00, or 14.3 percent, in the cash consideration, and one common share of Agrium for each CF share.

The increased offer represents a premium of 53 percent to CF's closing price on February 24, 2009 -- the day before Agrium announced its initial proposal, and 68 percent to the previous 30-day volume weighted average price. While it is too early to see if this is the final offer, ultimately we believe that Agrium will prevail, and CF Industries has a fiduciary responsibility to accept the offer.