The head of CF Industries Holdings Inc. (CF) said Tuesday he was "digesting" a rival's plan to buy Terra Industries Inc. (TRA) a month after the fertilizer dropped its own year-long pursuit of the U.S. fertilizer maker.

Chairman and Chief Executive Stephen Wilson declined further comment under persistent analyst questioning on a post-earnings conference call, a day after Norway's Yara International ASA (YARIY, YAR.OS) agreed to pay $4.1 billion in cash for Terra, a pure-play nitrogen producer.

CF Industries' cash-and-stock-offer was valued at slightly less than Yara's accepted bid following a protracted hostile pursuit although its estimated synergies were higher than those projected by the Norwegian group.

Wilson said there had been "no interactions" with Terra since it dropped its offer last month, and would not comment on whether it had been approached to match the Yara terms.

Terra shares rose $7.36, or 22.1%, to $40.61 Tuesday, just below Yara's $41-a-share bid, which is subject to shareholder and regulatory approval.

Wilson said CF was still evaluating what to do with its surplus cash after the Terra bid lapsed.

CF shares rose $2.64, or 2.5%, to $103.05 after reporting lower fourth-quarter earnings but also a bullish outlook for demand this year.

"The quarter was marked by a late harvest and a poor fall ammonia application season," said Wilson in a statement. "But by the end of the quarter, stronger buying interest had returned and prices had risen, reflecting the reality that the U.S. market needs to attract enough nitrogen fertilizer from world markets to meet strong expected demand in the spring of 2010."

Wilson noted during the conference call that fundamental drivers "are in the sweet spot" and "the outlook for demand is robust," while inventories across the marketing chain are relatively low.

CF reported a profit of $51.4 million, or $1.04 a share, down from $190.1 million, or $3.59, a year earlier. The results included net charges of 40 cents and 29 cents, respectively. Revenue dropped 53% to $506.7 million. Analysts polled by Thomson Reuters had most recently forecast earnings of $1.15 on $500.4 million in revenue.

Gross margin fell to 24.9% from 33.6% amid the sales woes. Sales in the company's nitrogen segment--its biggest by revenue--declined 50% but volume was flat. Phosphate volume jumped 36% on strong exports.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com

(Nathan Becker contributed to this report.)