US Terra rejects latest takeover bid from CF Industries

25 August 2009 23:11  [Source: ICIS news]

HOUSTON (ICIS news)--US nitrogen fertilizer producer Terra Industries on Tuesday rejected yet another takeover offer from rival CF Industries, claiming the $3.7bn (€2.6bn) bid undervalued Terra.

“Our board has unanimously concluded that this most recent version of your proposal continues to run counter to Terra’s strategic objectives, substantially undervalues Terra both absolutely and relative to CF, and would deliver less value to our shareholders than would owning Terra on a stand-alone basis,” Terra CEO Michael Bennett said.

Illinois-based CF made its first overture for Iowa-based Terra in January.

The most recent deal offered a fixed exchange ratio of .465 chares of CF for each Terra common share. That represented a premium of 35% over the exchange ratio on 15 January, just prior to when the initial offer was made.

“CF Industries has made a full and fair offer,” the company said in a statement. “CF Industries is confident that Terra stockholders will show their support by voting for CF Industries’ nominees at Terra’s annual meeting, which should have been held by now.”

CF is itself a takeover target, rejecting offers from Canadian fertilizer retailer Agrium.

($1 = €0.70)

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By: Ben DuBose
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