Which Fertilizer Maker Will Win the War?

NEW YORK (TheStreet) -- The three-way takeover battle between Agrium(AGU Quote), CF Industries(CF Quote) and Terra Industries(TRA Quote) has captivated the fertilizer world for months.

To review: Agrium is trying to buy CF which is trying to buy Terra. Last week, matters came to something of a head when CF sweetened its bid for Terra, and, within days, Agrium did the same with its offer for CF.

Terra will hold its annual meeting on Nov. 20, with director candidates nominated by CF on the slate for election to Terra's board. Also during the powwow, shareholders must consider CF's offer, and already Terra management has released an investor presentation that outlines in detail just why it believes the bid is substandard.

As we've said before, all love is unrequited when it comes fertilizer, evidently. CF Industries continues to bombard its own shareholders with similar critiques of Agrium's bid. The key takeaway: love would indeed be returned if only the prices offered weren't -- in the eyes of the love interests, at least -- so low-rent.

Collapsed demand for fertilizer products has also played a role in this ongoing drama. As prices for agricultural commodities plunged amid the recession, farmers drastically scaled back on their crop growing and, thus, their fertilizer buying. Year-over-year profit declines of around 90% have been the norm in the industry this earnings season. With stock prices depressed, top executives (and their investment bankers, of course) have come to believe that it's a great time to buy a rival, especially if a global economic recovery looms around the corner.