CF Won’t Extend Financing For Terra Deal

A day after rival fertilizer maker Terra Industries again rebuffed its takeover bid, CF Industries said it will not seek to extend financing to complete an acquisition of the Sioux City-based company beyond the end of this year.

CF’s $2.5 billion financing arrangement with Morgan Stanley is set to expire on Dec. 31. The company said its ability to obtain financing for any Terra transaction after that date will depend on the credit markets and other factors.

In a statement late Tuesday afternoon, CF said it has not given up on combining the two companies, but warned investors there is "no assurance” that CF will take further action to acquire Terra after Dec. 31.

"We continue to believe that an acquisition of Terra is in the best interests of the stockholders of both companies and intend to consider alternatives available to us to advance this transaction," CF President, CEO and chairman Steve Wilson said in a statement.

CF, which launched its hostile bid for Terra in January, did not disclose what specific alternatives it might pursue.

On Tuesday, CF also disclosed it also has sold a "sufficient number” of Terra shares in open market transactions, bringing its interest in Terra from 7 percent to just below 5 percent. As a result, the company said it no will longer be required to file a Schedule 13D in regards to Terra with the U.S. Securities and Exchange Commission. The move means CF is now free to have private conversations with Terra without having to immediately publicly disclose such discussions.

In early, after-hour trading Tuesday, Terra shares were down more than 3 percent on some speculation that the likelihood of a CF-Terra deal could be fading, while CF shares were unchanged.

On Monday, Terra announced its board had turned down CF’s sweetened offer of $29.25 per share in cash, plus 0.1034 share of CF common stock, raising the value to nearly $4.6 billion. All 11 directors rejected the bid, including three CF-backed nominees elected at Terra’s annual meeting last month.

In a statement, Terra said the latest offer, while higher than seven previous bids, continues to "substantially" undervalue the Sioux City-based company.

The company said the offer did not fully reflect improving conditions in the fertilizer market. A broad recovery among its agricultural and industrial customers is expected to drive rising demand and improving margins for the company’s upgraded nitrogen-based products.

"This thing has been going on for almost a year," Louis Meyer, a New York-based analyst at Oscar Gruss & Son Inc., told Bloomberg News in an interview Monday. "Terra clearly wants to stay independent.”

As it has pursued Terra, CF has faced its own takeover threat from Alberta, Canada-based Agrium.

(Source: Sioux City Journal)

Leave a Reply

Latest News
Greenleaf Technologies TADF03-D Dual Fan Nozzle
NozzlesSix Greenleaf Nozzles Approved For XtendiMax With Vapor…
February 22, 2017
Greenleaf Technologies has announced that six of its TurboDrop D Series nozzles have been approved for use with Monsanto’s XtendiMax Read More
Winter Wheat
Industry NewsTiger-Sul Hires Manitoba And Eastern Canada Account Man…
February 22, 2017
Tiger-Sul, a global leader in sulphur fertilizers and crop performance products, has announced that sales veteran Trevor Loewen has joined Read More
NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
SprayersApache 1000 Series Sprayer Earns 2017 EquipmentWatch Hi…
February 21, 2017
ET Works has been named a winner in the 2017 EquipmentWatch Highest Retained Value Awards program, the industry’s only award Read More
Measuring Bulk Tanks
StewardshipMeister Media Among 2017 Award Winners Presented By The…
February 21, 2017
The Pesticide Stewardship Alliance (TPSA) held its annual conference in San Diego, CA, earlier this month where three awards were Read More
John Reifsteck
CropLife 100GROWMARK’s Reifsteck Earns NCFC Director Of The Y…
February 21, 2017
GROWMARK Chairman of the Board and President John Reifsteck has earned the prestigious Director of the Year Award from the Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts …
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmatio…
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trump, Senate, Cabinet
LegislationBREAKING: Trump EPA Nominee Scott Pruitt Confirmed by S…
February 17, 2017
Scott Pruitt, who as Oklahoma’s attorney general spent years suing the Environmental Protection Agency over its efforts to regulate various Read More
ManagementFebruary Road Trip Edition
February 17, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent visits to Indiana and Kentucky. Read More
Heritage Cooperative Finished Building Aerial
ManagementHeritage Cooperative, Agland Co-op Approve Merger
February 17, 2017
Agland Co-op and Heritage Cooperative stockholders have both approved the merger agreement between Agland Co-op and Heritage Cooperative. Now begins Read More
LegislationARA Fly-In: Ag Retail Descends on Capitol Hill, Lawmake…
February 15, 2017
More than 100 agricultural retailers, distributors and suppliers headed to Capitol Hill Tuesday morning for the Agribusiness Congressional Fly-in, according to a Read More
Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked M…
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
NL5000 With G5 Technology
SpreadersNew Leader Introduces NL5000 Dry Nutrient Applicator Wi…
February 13, 2017
New Leader, a division of Highway Equipment Company (HECO), has announced the next generation of spreading technology with the NL5000 Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
CropLife 100Pinnacle Agriculture Agrees To Credit Agreement Amendme…
February 9, 2017
Pinnacle Operating Corp. has entered into an amendment (the “Amendment”) to its First Lien Credit Agreement that will provide for, Read More
ManagementUpdates on Upcoming Trips, Dow-DuPont, and the Des Moin…
February 9, 2017
Editors Paul Schrimpf and Eric Sfiligoj review a few future travels, along with the latest on big company mergers and Read More
Championship Tractor Pull
EquipmentNational Farm Machinery Show Highlighted By Championshi…
February 9, 2017
The scream of monster engines, the stench of burning rubber and the ground-pounding vibrations of the country’s largest, loudest and Read More