Fertilizer maker Agrium Inc. said on Tuesday it would push ahead with its hostile bid for rival CF Industries Inc. after the offer was backed by holders of more than 60% of CF's stock.

About 30.14 million CF shares, or 62% of the total outstanding, were tendered to Agrium as of the Monday night deadline. Agrium said it was extending the deadline by a month, through July 22.

Agrium, a Canadian company, originally proposed to take over smaller U.S. rival CF in February and has twice sweetened its offer. Earlier this month, Agrium said it would withdraw its bid if it did not receive support from a "compelling majority" of CF shareholders by the Monday night deadline.

It is currently offering US$40 in cash and one common share for each CF share, which values the company at US$3.8-billion, based on Agrium's share price at the market close on Monday.

CF has repeatedly rejected Agrium's overtures, contending the offer substantially undervalues the company. CF is locked in its own hostile takeover bid for Terra Industries Inc and has characterized Agrium's bid as an attempt to scuttle that deal.

"CF stockholders have sent a resounding message to CF's board that they support Agrium's offer," Agrium chief Mike Wilson said in a statement on Tuesday. "We appreciate the support shown by CF stockholders and will continue to press forward to complete this compelling combination."

CF shares rose 3.9% to US$72 in premarket trading.

© Thomson Reuters 2009