Yara Won’t Increase Terra Offer
Yara International ASA has no plans to raise its offer for Terra Industries Inc. after a competing bid from CF Industries Holdings Inc., said Frank Andersen, a member of Yara’s board.
CF yesterday proposed paying $4.72 billion in cash and stock for Sioux City,IA-based Terra, which on Feb. 15 agreed to accept a $4.1 billion cash offer from Yara, located in Oslo. Yara will await the Terra board’s response before commenting further, said spokesman Asle Skredderberget, adding that Andersen was not speaking on the company’s behalf.
“We have stated that this is our final offer,” Andersen, who represents Yara employees on the board, said today by phone from Glomfjord in northern Norway. “For the time being, there is no indication that there will be any changes to that.”
CF has attempted to buy Terra since January 2009 while fending off a hostile bid from Calgary-based Agrium Inc. At stake in the three-way battle is whether Agrium or CF will be the world’s second-largest publicly traded maker of nitrogen- based fertilizers after Yara. Terra said yesterday it had received CF’s proposal and would make no further comment until its board had completed an evaluation.