|
|
| CF buys 7% of Terra in countdown to showdown |
|
CF Industries has attempted to strengthen its hand in its long-running attempt to buy Terra Industries by buying 7% of the nitrogen group in the market and massaging the terms of its offer.
Illinois-based CF said it had spent $247m over the past two weeks buying 6.96m Terra shares, implying an average price of $35.50 a share.
It also said that a bonus issue of shares after the proposed deal available to CF investors would kick in only when shares in the combined group reached $125 a share, rather than the $115 a share earlier proposed.
However, the statement made no mention of a $1bn return of cash CF had formerly proposed.
CF 'commitment'
"Our acquisition of 7% of Terra further demonstrates our commitment to the business combination," CF chief executive Stephen Wilson said.
Terra said it would "review and consider the revised proposal in due course".
The announcement comes ahead of Terra's annual meeting in November, when CF is attempting to get three candidates voted on to its target company's board.
Terra shares stood 1.7% higher at $35.80 in afternoon deals in New York.
CF shares were 1.7% higher at $85.68, placing a value of $39.84 on Terra shares at its proposed deal terms.
|
|
|
|
PRINTABLE VERSION
EMAIL TO A FRIEND
RSS FEEDS