TORONTO (miningweekly.com) - US fertiliser products group CF Industries on Monday rejected an improved takeover offer from Calgary-based rival Agrium as “grossly inadequate” and repeated its determination to buy smaller target Terra Industries.

On Friday, Agrium increased the cash portion of its offer for CF by 10%, to $35,00, plus one of its own shares for every CF share.

However, the offer “substantially undervalues CF Industries and is not in the best interest of CF Industries and its stockholders”, the company said in a statement on Monday.

Agrium said last week that it was asking CF shareholders to “send a message” to management that they support Agrium's offer by withholding votes in connection with an upcoming vote to elect directors to CF's board.

Agrium's offer is conditional on CF abandoning its own hostile takeover bid for Terra Industries.

However, CF CEO Stephen Wilson said on Monday he was confident that the acquisition had the support of his own shareholders, as well as Terra's investors.

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