Fertilizer Wars Rage: CF Ups Terra Bid

DEERFIELD, Ill. (TheStreet) -- CF Industries(CF) has again sweetened its bid for Terra Industries(TRA), as it seeks to acquire its smaller fertilizer rival while, at the same time, attempting to thwart the advances of its own pursuer, Agrium(AGU).

Terra shares shot higher Monday. They were changing hands at $41.53 in midday action, up $2.48, or 6.4%. After trading lower premarket, CF's stock turned positive in the regular session, moving recently at $89.78, up $1.22, or 1.4%.

CF said it increased the cash portion of its Terra offer by $4.75 a share to $36.75. The stock portion remains the same: 0.1034 of a CF share. In all, the offer values Terra at about $45.91 a share, based on CF's closing stock price Friday. With Terra's approximately 99.83 million shares outstanding, the deal would be worth about $4.58 billion.

In a written statement, CF's chief executive, Stephen Wilson, said, "We have made a compelling offer, which represents more than a 50% premium to what we believe would be the unaffected trading price for Terra. It is time to sign a merger agreement and put these two great companies together."

Almost a year after beginning its so-far-unrequited takeover effort, CF sent a letter to Terra's board Friday afternoon with the sweetened bid. "It is clear that Terra Industries stockholders want and expect a transaction now," the letter began. It concluded: "We are prepared to meet immediately and to sign a merger agreement before the market opens" Monday.