CF Raises Bid For Terra, Adds Cash Portion

DEERFIELD, Ill. (AP) — CF Industries Holdings Inc. has raised its bid for Terra Industries by adding a cash portion to the offering in the fertilizer company's latest move to acquire its resistant rival.

The latest bid sent Terra shares up $2.14, or 6.7 percent, to close at $33.91 in Monday trading. CF shares rose 84 cents, 1 percent, to $84.09.

CF, based in Deerfield, Ill., said Sunday it will offer $32 in cash — including the $7.50 per share special dividend declared by Terra — and 0.1034 of a CF common share for each Terra share.

This raises the value of the deal to about $4.1 billion, or $40.61 per share. The deal is a 5 percent premium on CF's previous all-stock offer valued at about $38.70 per share, based on Friday closing prices.

CF has repeatedly rejected Terra's offers. But it says its board of directors will review and consider the latest offer.

Meanwhile, CF has been resisting offers by Canadian rival Agrium Inc., which has been trying to take over CF since February.