CF issues new $4.74 billion offer for Terra, despite earlier vow to end hostile pursuit

CF issues new $4.74 billion offer for Terra

NEW YORK — CF Industries made a new $4.74 billion offer for Terra Industries on Tuesday, just six weeks after vowing to end its hostile pursuit of the fertilizer producer.

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 Monday’s closing stock price, or about $4.74 billion. CF’s last offer, made in December, was valued at $4.6 billion.

Terra has 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.

Terra shares jumped $4.47, or 10.9 percent, to close at $45.67 Tuesday. Earlier in the session, the stock hit a 52-week high of $46.70.

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.

Terra said its board will evaluate the terms of CF’s proposal, but it declined further comment.

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 advisers.

Yara spokesman Asle Skredderberget declined to comment on the new bid from CF Industries. He also declined to say how the bid might affect Yara’s plans for a rights issue of $2 billion to $2.5 billion that would help fund the Terra acquisition.

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Ian MacDougall in Oslo contributed to this report.