Chemtrade ups rhetoric in battle for Canexus

• renewed its war of words with as the chemical company pushes its unsolicited takeover offer on Canexus shareholders.

Chemtrade president and CEO Mark Davis issued a statement Monday that said Canexus management “has repeatedly failed their shareholders and have no credible plan for growth.”

Davis released a list of reasons why Canexus shareholders should accept his company’s hostile takeover offer less than a week after the Calgary-based company released its own list of reasons for ignoring Chemtrade.

Last week, Canexus president and CEO Doug Wonnacott said that Chemtrade had previously been willing to offer $1.90 per share for control of Canexus compared with its current offer of $1.50 per share, which values Canexus at $884 million including debt.

Chemtrade dismissed that $1.90 figure, however, as “a desperate attempt to confuse shareholders” since that value was a non-binding expression of interest and subject to Chemtrade accessing more Canexus data. Canexus management was not available for comment.

“After they sold (their oilby-rail terminal business), we actually said ‘here’s an indicative bid based on public information’ because that was all we had. That was $1.90,” Davis said in an interview.

“Then we went in and did our diligence and promptly lowered our offer to $1.45.”

He said the company lowered its offer because he found there were a number of operational deficiencies and “catch up costs” that Canexus would need to pay. Davis said some Canexus assets “need significant tender loving care going