04 November 2009 14:38 [Source: ICIS news]
(Adds CF response, updates throughout)
Earlier on Wednesday, Iowa-based Terra said its board of directors rejected Illinois-based CF’s proposal to acquire Terra for $32.00/share in cash and 0.1034 of a share of CF common stock for each share of Terra common stock (including the $7.50 per share special cash dividend declared by Terra).
“CF has made a full, fair and compelling offer, which provides Terra stockholders with certainty of value and closing, and we are confident that Terra stockholders will show their support for its offer by voting for CF Industries’ three highly qualified, independent nominees at Terra's annual meeting on 20 November,” said CF president and chief executive Stephen Wilson.
Terra said it rejected the offer because it significantly undervalued Terra’s near-term and long-term prospects, including the fact that the offer was based on estimated earnings before interest, tax, depreciation and amortisation (EBITDA) for 2010 of $525m (€357m), significantly below Terra’s estimated $694m.
($1 = €0.68)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|