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CF Industries Turns Down $3.6 Billion Agrium Bid

Fertilizer maker rejected Agrium's offer as grossly inadequate and said it will continue to pursue a business combination with Terra Industries Inc.

DEERFIELD, Ill. (AP) -- CF Industries Holdings Inc. on Monday rejected Agrium Inc.'s $3.6 billion offer for the fertilizer maker as grossly inadequate and said it will continue to pursue a business combination with Terra Industries Inc.

CF Industries also described the cash-and-stock acquisition proposal by Agrium, an agricultural products company, as "opportunistic."

The company said it will continue to pursue fertilizer maker Terra Industries.

Specifically, it said it would agree to an exchange ratio based on $27.50 for each Terra share, a near 70 percent premium on Terra's stock price, with an exchange ratio of not less than 0.4129 of a CF Industries share and not more than 0.4539 of a CF Industries shares.

Last week Terra's board advised shareholders to reject CF Industries unsolicited share purchase offer, which at that point said Terra shareholders would have received 0.4235 of a CF Industries share for each Terra share. Terra said that offer significantly undervalues the company.

Shares of CF Industries fell $2, or 3.3 percent, to $58.60 in premarket trading. Shares of Terra closed at $26.11 on Friday.

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