CF Industries Shares Jump On Takeover Talk

The shares of CF Industries Holdings Inc. (NYSE: CF) rose after the start of trading on Friday morning due to speculation that Agrium Inc. (NYSE: AGU) could more easily proceed with its plans to take over CF because CF had withdrawn a hostile bid of its own for another rival company on Thursday.

"It is clear that an acquisition of Terra now would require a significant increase in our offer, given the substantial uplift in equity values in the fertilizer sector," CF chief executive Stephen Wilson said. He said that CF was unwilling to raise its $4.6 billion offer for Terra any further.

"The Terra distraction is now out of the way," Oscar Gruss & Son Inc. analyst Louis Meyer told Bloomberg on Friday. "Agrium is now in a better position to make a real stab at acquiring CF."

Agrium made it's first offer for CF last February and has met resistance ever since. Agrium's latest offer of $5.4 billion in cash and stock was turned down by CF.

"We remain fully committed to acquiring CF and believe the CF board of directors has failed to uphold its stockholders interests," chief executive of Agrium Mike Wilson said in a statement.