Fertilizer Mergers in the Backstretch (CF, AGU, TRA)

The proposed acquisition of CF Industries Holdings, Inc. (NYSE:CF) by Canadian firm Agrium Inc. (NYSE:AGU) is heading for the shareholders’ meeting on April 21st. CF Holdings has received an opinion from RiskMetrics Group, a risk management firm that now owns former Institutional Shareholder Services, supporting the re-election of CF’s three nominees to its board of directors.

The report may knock the wind out of Agrium’s recent letter to shareholders asking them to withhold votes for CF’s nominees. CF still insists that Agrium is trying to kill CF’s merger with Terra Industries Inc. (NYSE:TRA) and to acquire CF at a “bargain price.”

Adding to the mix, Terra will announce its earnings on April 21st. Terra also got a boost when Citigroup Inc. (NYSE:C) recently upgraded its stock, and CF’s, to ‘Outperform’.

Paul Ausick
April 13, 2009