Terra Industries rejects $2.1B takeover offer
Wednesday January 28, 3:21 pm ET
Terra Industries board unanimously rejects $2.1B takeover bid by CF Industries Holdings
SIOUX CITY, Iowa (AP) -- Fertilizer company Terra Industries Inc. said Wednesday that its board has unanimously rejected an unsolicited $2.1 billion takeover offer from CF Industries Holdings Inc., which maintained its commitment to the bid.
CF Industries made the all-stock offer on Jan. 15. Under the proposal, Terra Industries shareholders would have received 0.4235 of a CF Industries share for each Terra share held.
Deerfield, Ill.-based CF Industries said its proposal is not dependent on financing.
Terra Industries said its board decided that the bid was not in the best interest of the company or its shareholders.
In a letter to CF Industries Chief Executive Stephen R. Wilson, Terra CEO Michael Bennett said the Terra board of directors concluded the proposal doesn't create additional value for shareholders of either company, and that it undervalues Terra.
But CF Industries was unwavering in its support of the offer.
"We are confident that our proposal is a full and fair offer and continue to believe that a combination of the two companies would provide significant benefits to both CF Industries and Terra shareholders, employees and customers," CF Industries CEO said in a statement.
CF Industries said it would prefer a deal with Terra Industries, but is open to other alternatives.
Terra Industries had revenue of $2.4 billion in 2007.
Shares of Terra Industries added $1.16, or 6 percent, to $20.64 in midday trading. CF Industries' stock gained $2.59, or 5.4 percent, to $48.90.
Source: Associated Press
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