22 October 2009 17:31 [Source: ICIS news]
HOUSTON (ICIS news)--US nitrogen fertilizer producer Terra Industries urged its shareholders to reject a panel of three directors nominated by CF Industries, which is intent on taking over the company, executives said in a letter on Thursday.
The letter from Terra president and chief executive Michael Bennet and chairman Henry Slack was released ahead of Terra's annual meeting on 20 November.
“We urge you to reject CF’s transparent attempt to advance its own interests at the expense of Terra shareholders,” the letter said.
CF has offered 0.465 of a CF share for each share of Terra.
Terra executives have consistently stated that they believe the company would benefit its shareholders more by remaining a pure play nitrogen company and not by being combined with CF’s phosphate business.
CF’s phosphate business has substantially less capacity than its North American competitors, and it is heavily dependent on export demand, which has been declining as China and Morocco have expanded capacity, Terra said.
Further, Terra said CF’s plans to spend up to $2bn (€1.32bn) on a greenfield nitrogen complex in Peru would risk substantial capital and takes years to realise a positive cash flow.
($1 = €0.66)For more on nitrogen fertilizers visit ICIS pricing fertilizers
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