02 November 2009 14:19 [Source: ICIS news]
HOUSTON (ICIS news)--US nitrogen and fertilizer maker CF Industries on Sunday injected around $3.2bn (€2.2bn) in cash to sweeten its original share-swap hostile takeover bid for rival ammonia firm Terra Industries.
Iowa-based Terra did not return calls for comment early Monday on the revised offer of $32.00 in cash and 0.1034 of a share of CF common stock for each Terra share.
The offer is worth $40.61 per Terra share, based on the 30 October closing price for CF common stock, CF said.
CF calculated the offer to be a premium of 28% to Terra’s closing price on 30 October, and pointed out that Terra's shares are already trading at a significant premium because of the takeover that was launched in January.
Morgan Stanley has committed $2.5bn in funding for the revised offer, which CF said is not subject to either a financing condition or the approval of CF stockholders.
"The strategic benefit of combining these two great companies is undeniable," CF president and chief executive Stephen Wilson said in a statement.
Immediately after receipt of the offer, Terra said in a statement its board of directors would review and consider the revised proposal in due course and that Terra shareholders needed to take no action at this time.
Terra has steadfastly rejected the terms of CF's previous offers, which have been increased three times preior to the cash injection in the latest bid.
($1 = €0.68)
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