Fertilizer Wars! CF Pressures Terra
DEERFIELD, Ill. (TheStreet) -- CF Industries (CF) won't extend the financing commitments for its proposed acquisition of Terra Industries (TRA), putting pressure on its target, which recently spurned a buyout offer for the seventh time since the protracted courtship began in January.
CF, facing its own aggressor in Canada's Agrium (AGU), had received commitments for $2.5 billion in acquisition financing from Morgan Stanley (MS), which also serves as one of CF's consiglieres in the hostile takeover battle. Failing a deal between the two fertilizer producers, Morgan's funding promise will expire on Dec. 31.
CF stopped short of capitulating, of course, saying that any future financing for a deal would be at the mercy of the credit markets. "There can be no assurance that CF ... will take further action to acquire [Terra] or that the financing necessary to fund such a transaction will be available after" the end of the year, CF said in a regulatory filing Tuesday.
On Monday, Terra rejected CF's latest sweetened offer (comprised mostly of cash and some CF stock), which values Sioux City, Iowa's Terra at around $4.6 billion based on the closing price of CF shares Tuesday.This time, it was a particularly stinging rejection for CF. The Deerfield, Ill., company won a proxy battle at Terra's annual meeting in November, successfully foisting three of its own candidates onto Terra's board. But those very CF-backed directors voted to dismiss the latest CF bid. As Terra said in its press release Monday, the board's decision was unanimous.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV