Terra Steps Up CF Attack Ahead of Vote

SIOUX CITY, Iowa (TheStreet) -- As Terra Industries(TRA) prepares for a crucial shareholder vote at its annual meeting on Friday, the company's management sent a letter to that constituency Monday urging them to spurn the advances of CF Industries(CF), which has been pursuing a hostile bid for Terra since January.

Deerfield, Ill.-based CF, which sweetened its buyout offer for Terra last week, has nominated a slate of three dissident candidates for election to Terra's board.

In its letter on Monday, Terra said yet again that CF's bid "continues to significantly undervalue" the Iowa-based fertilizer maker.

"Terra is a preeminent 'pure play' nitrogen company," the letter read. "Our product mix, diversified agricultural and industrial customer base and geographic advantages leave us well-positioned to benefit from the economic recovery and the expected upsurge in nitrogen demand."

Terra also repeated the views of three proxy adviser firms that had advocated, pro-Terra, for reelection of the company's incumbent directors.

One of the pro-Terra firms, Proxy Governance, said that "CF's strategy for the combined company would diversify away some of the benefits of the strong competitive position Terra's board and management have built over the years."