Terra Industries Accepts CF Industries' Offer

 Terra Industries says it has accepted CF Industries' $47.40/share offer, which was made on March 2. The offer values Terra at about $4.72 billion. Terra has informed Yara International, which offered to buy the company for $41.1/share last month, that it has accepted CF's bid. Terra's board had approved Yara's bid when it was offered. Terra will have to pay Yara a $123-million breakup fee if their deal collapses. Yara has five business days after receiving Terra's notice to make a new offer. 

"We believe that Terra is worth more to CF Industries than to any other acquirer, given the strategic benefits of the transaction, including synergies, which only CF Industries can achieve," says Stephen Wilson, chairman, president and CEO of CF. "Any offer from Yara must be heavily discounted for the substantial risks and length of time associated with closing,” Wilson says.

CF has offered Terra $37.15/share in cash and 0.0953 of a share of CF Industries common stock for each Terra share.