Terra Rejects CF Industries' Latest Takeover Bid
DOW JONES NEWSWIRES
Terra Industries Inc.'s (TRA) board of directors unanimously rejected
fertilizer giant CF Industries Holdings Inc.'s (CF) latest bid to acquire the
company.
The Iowa-based fertilizer maker called the offer "inadequate, opportunistic
and not in the best interests of Terra and its shareholders." Terra said CF is
projecting Terra's earnings to be some 25% less than Terra's projection.
"CF's latest proposal fails to appropriately value Terra's world class assets,
strategic advantages and prospects," said Terra President and Chief Executive
Michael Bennett.
CF overhauled its takeover bid Sunday, upping its offer by about $200 million
and and making it mostly cash. The latest offer valued Terra at about $4.1
billion.
The company's six previous attempts to buy Terra had been all-stock offers.
The CF offer was the latest in a long-running, three-way-takeover fight among
fertilizer rivals. CF has been pursuing Terra since January, and Calgary-based
Agrium Inc. (AGU) has been trying to take over CF since February.
CF is also seeking to get three people elected to Terra's board in a vote that
takes place Nov. 20.
Both CF and Terra shares were inactive premarket.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-04-090811ET
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