CF Industries ( CF) filed with the Securities and Exchange Commission Thursday preliminary proxy materials to nominate three members to the board of Terra Industries ( TRA). CF Industries nominated John N. Lilly, a former CEO of Pillsbury, as well as David Wilson and Irving Yoskowitz to the Terra board. The move follows Terra's latest rejection Wednesday of the latest takeover offer from CF Industries, saying the proposal "substantially undervalues" the fertilizer producer. CF Industries said earlier this week it would agree to pay $27.50 for each Terra share with an exchange ratio between 0.4129 and 0.4539 of a CF Industries share. Terra's shares closed Wednesday at $25.05 -- less than half of what they were worth last summer when the stock peaked at $57.64.