Fertilizer Maker Makes Final Plea for Merger (AGU, CF, TRA)

Tomorrow’s the day that fertilizer maker Agrium Inc. (NYSE:AGU) will find out if its offer for competitor CF Industries Holdings, Inc. (NYSE:CF) is too good for shareholders to refuse. Agrium has mailed yet another letter to CF shareholders today, urging them to withhold votes for three CF-nominated directors. There’s nothing new in the letter, just another encouraging word to shareholders to throw the bums out.

The third spoke in this wheel, Terra Industries (NYSE:TRA) reports first quarter earnings tomorrow. CF has an offer on the table for Terra, but the outcome of the proposal depends on whether or not Agrium prevails.

So far this morning, Agrium shares are down nearly 3%, within pennies of the stock’s 52-week low of $38.86. Same story with CF — down more than 3% to $67.62, just $0.07 above the 52-week low. And Terra is taking collateral damage, down to $27.52, just $0.19 above its 52-week low.

Paul Ausick
April 20, 2009