("Terra Again Urges CF Rejection, Cites Agrium Offer For CF,"
published at 8:47 a.m. EST, incorrectly said CF had slightly raised
its bid for Terra. That was based on incorrect information run in
"Terra Indus 4Q Net More Than Doubles Amid Higher Nitrogen Prices,"
published Feb. 10. A corrected version of Thursday's story appears
below.)
DOW JONES NEWSWIRES
Terra Industries Inc. (TRA) again urged its shareholders to
reject rival fertilizer maker CF Industries Inc.'s (CF) $2.7
billion hostile-takeover bid, calling the all-stock offer an
"illusory proposal" in light of Agrium Inc's (AGU.T) bid to buy
CF.
Terra's board rejected CF's $20 a share bid in January, then
told its shareholders in February to take no action on the tender
offer as it weighed the proposal. While launching the tender, CF
also announced plans to nominate three people to replace current
Terra board members up for reelection - including Chairman Henry R.
Slack - and start a share-exchange offer.
The directors on Thursday formally told its shareholders to say
no to CF's revised offer, calling it "not in the best interests of
Terra and Terra's stockholders." They added in a letter to
shareholders that the Agrium bid for CF, initially valued at $3.6
billion "makes it unlikely" its shareholders will approve CF
acquiring Terra. That presents "Terra's stockholders with what is
effectively an illusory proposal," Terra's board wrote
shareholders.
Investors in the fertilizer sector have seen a boom-and-bust
cycle over the past 18 months, with stock prices doubling on
soaring demand and prices before commodity markets reversed course
from record highs in mid-2008.
Terra shares rose 5.5% premarket to $26.67 while CF fell 1.7% to
$61.70.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com