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CALGARY–Agrium Inc.’s months-long quest to acquire CF Industries Holdings Inc. failed to reach a decisive end yesterday, with just under two-thirds of the U.S. target’s shareholders supporting the Calgary-based company’s offer.

Agrium said 62 per cent of CF shareholders tendered their stock to the nearly $4 billion (U.S.) deal, which expired Monday at midnight but was extended to July 22.

Despite coming in just shy of the two-thirds needed under Agrium’s offer, the results were "extraordinarily strong," Agrium CEO Mike Wilson said in a statement. "CF stockholders have sent a resounding message to CF’s board that they support Agrium’s offer."

Agrium is offering $40 in cash, plus one Agrium share for each CF share, a bid it has called its "best and final price" unless CF has a change of heart and is willing to sit down and talk terms.

Agrium’s hostile pursuit of CF has been rebuffed by directors of the Deerfield, Ill.-based fertilizer producer and distributor, despite two increases to the bid. Yesterday, the pursued firm stood pat.

"Contrary to Agrium’s assertions, the tender offer results do not change the facts that Agrium’s offer substantially undervalues CF Industries, our shareholders do not support the price in the offer, and the offer has significant regulatory issues," said CF chief executive Stephen Wilson affordable health insurance in new york.

CF contends that Agrium is making the offer to quash CF’s own hostile bid for rival Terra Industries.

Agrium says the deal is a 60 per cent premium to CF’s closing stock price Feb. 24, the day before its first bid.

UBS Investment Research analyst Brian MacArthur in a note to clients said, "Agrium cannot legally compel CF to negotiate. Should CF’s board reject Agrium’s overtures, CF could remain independent," but it risks suffering a stock drop of $6 to $12 per share if Agrium walks away from its bid.

Agrium retails agricultural products and services in North and South America. It is a leading global producer and marketer of fertilizer. Its stock closed on the TSX up $2.09 to $47.01 and up $1.85 (U.S.) to $40.74 on the NYSE. CF stock rose $3.56 to $72.88 in New York.

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