CF issues another offer for Terra after vowing to end hostile pursuit
By APTuesday, March 2, 2010
CF issues another offer for Terra
DEERFIELD, Ill. — CF Industries made another offer for fertilizer maker Terra Industries on Tuesday, just six weeks after vowing to end its hostile pursuit.
Chemical maker CF, based in Deerfield, Ill., offered $37.15 in cash and nearly one-tenth of a share of common stock for each Terra share.
CF said the offer has a total value of $47.40 per share based on CF Industries closing price on Monday.
Terra shareholders have repeatedly rejected CF offers. Terra, based in Sioux City, Iowa, said last month it will be bought instead by Norway’s Yara for $4.1 billion, or about $41.10 per share.
CF said in a statement Tuesday that it only withdrew its bid for Terra because it believed Terra wouldn’t agree to a sale.
“Now that Terra is for sale, we have made an offer that is superior to Yara’s substantially lower, highly conditional offer,” President and CEO Stephen R. Wilson said.
CF Industries has obtained a total of $4.05 billion of financing commitments to fund the transaction, refinance debt and provide for a revolving credit facility.
Morgan Stanley and Rothschild are acting as financial advisors.
