Fertilizer producer Terra Industries Inc. (TRA) will declare that a buyout offer from rival CF Industries Holdings Inc. (CF) is superior to one from Norway's Yara International ASA (YAR.OS), CNBC's David Faber reports Wednesday. Terra plans to give Yara five business days to attempt to beat CF's proposal.

Last week CF offered about $4.72 billion -- $37.15 in cash and 0.0953 shares -- for each share of Terra. The company had fought CF's overtures for nearly a year before accepting Yara's all-cash $4.1 billion bid in February.

Neither CF nor Terra shares were trading premarket after closing Tuesday at

$100.63 and $45.83, respectively.

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