DOW JONES NEWSWIRES
CF Industries Holdings Inc. (CF) began its exchange offer for
all outstanding shares in rival fertilizer maker Terra Industries
Inc. (TRA).
Earlier this week, CF resumed its pursuit of Terra with a
roughly $4.72 billion offer that seeks to break up an agreed bid
from Norway's Yara International ASA (YAR.OS, YARIY). Terra for a
year had fought CF's advances before accepting Yara's all-cash $4.1
billion bid last month.
CF Chairman and Chief Executive Stephen R. Wilson called his
company's offer "far superior" to Yara's on Friday, because the CF
deal can close months sooner and carries fewer hurdles to overcome
before closing, such as U.S. and European antitrust approval needs
in a Yara/Terra combination.
CF's offer of $37.15 in cash and 0.0953 CF share for each Terra
share is worth about $47.46 based on Thursday's closing price. It
expires April 2 at 5 p.m. EST.
Neither CF nor Terra shares were trading premarket after closing
Thursday at $108.23 and $44.80, respectively. Both stocks are up
about three-fourths from a year earlier, better than the market at
large.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com