Wednesday, November 4th, 2009
Terra rejects CF's latest takeover offer of $4.1B as inadequate
SIOUX CITY, Iowa - Fertilizer company Terra Industries Inc. (NYSE:TRA) on Wednesday rejected its bigger rival CF Industries' latest unsolicited takeover offer, saying the US$4.1-billion bid was still too low.
Terra's said its board of directors unanimously rejected the latest offer, calling it "inadequate, opportunistic and not in the best interests of Terra and its shareholders."
Earlier this week, CF Industries Holdings Inc. (NYSE:CF) - which has pursued Terra since January - raised its offer by adding cash to the bid. It said the new bid was worth $40.61 per share, a five per cent premium on CF's previous all-stock offer.
Terra has repeatedly rejected CF's offers.
Meanwhile, CF Industries, based in Deerfield, Ill., has been resisting offers by Calgary-based rival Agrium Inc. (TSX:AGU), which has been trying to take over CF since February.
In New York, shares of Terra were up 12 cents at $35 in premarket trading Wednesday. CF shares closed at $85.43.
