Agrium bids to acquire CF Industries for $3.6 billion
Canadian fertilizer maker Agrium Inc
The bid is conditioned on CF dropping its hostile takeover offer for U.S. rival Terra Industries
Agrium said it has submitted a proposal to the board of directors of CF offering $72 in cash and stock for each CF share. The offer represents a 30 percent premium over CF's closing stock price on February 24.
CF shareholders would receive one Agrium common share and $31.70 cash for each CF share.
Agrium said the proposal is not subject to a financing condition. The company said it has sufficient cash resources and committed financing underwritten by Royal Bank of Canada and Bank of Nova Scotia to fund the cash portion of the proposal.
Terra says CF's all-stock bid undervalues Terra and would not create value for shareholders of either company.
(Reporting by Euan Rocha; editing by John Wallace)
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