04 November 2009 13:18 [Source: ICIS news]
Illinois-based CF on 1st November increased its offer to $32.00 in cash and 0.1034 a share of CF common stock for each Terra share.
The board of directors said in a statement that the offer had been rejected because it significantly undervalued Terra’s near term and long-term prospects, including the fact that the offer was based on an estimated earnings before interest, tax, depreciation and amortisation (EBITDA) for 2010 of $525m, significantly below Terra’s estimated $694m.
"CF`s latest proposal fails to appropriately value Terra's world class assets, strategic advantages and prospects," said Terra President and CEO Michael Bennett.
"Terra is a preeminent pure play nitrogen company, and through the continued execution of our strategy is well positioned to take advantage of an upsurge in demand from our agricultural and industrial customer base as the economic recovery continues."
The revised offer is worth $40.61 per Terra share, based on the 30 October closing price for CF common stock, CF said in an earlier statement.
CF itself is subject to a takeover bid after Canadian producer Agrium made an offer for it.
($1 = €0.68)
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