CF Industries revealed it was extending a financing lifeline to give itself extra time to nail a takeover of Terra Industries as its three nominees were formally adopted onto its target company's board.

The Illinois-based fertilizer group said it had exercised an option to extend until the end of this month financing for the deal from Morgan Stanley, the Wall Street investment bank.

While CF added that it did not have any right to extend the financing, the group said it was "committed to moving forward" with the Terra acquisition, for which it has offered $4bn in cash and shares.

"Recent" conversations with Terra shareholders had confirmed they wanted a sale of the group "in the near term and that the price we have offered forms the basis for final negotiations", CF chairman and chief executive Stephen Wilson said.

Poll results 

The statement came minutes before Terra confirmed that three nominees put up for its board by CF had indeed gained the investor support required for their appointment.

The candidates gained support of holders of 38% of Terra shares at the group's annual meeting two weeks ago, with owners of 36% of the stock voting for Terra's own slate, independent pollsters had confirmed.

"Terra's board and management team look forward to working constructively with our new directors to continue enhancing value for all Terra shareholders," Michael Bennett, Terra chief executive, said.

He added that the company anticipated an "upsurge in demand and profitability" from serving its agricultural and industrial customers.

Terra has, since the meeting, proposed creating three extra board positions, which would be filled by its three nominees which shareholders rejected at the annual meeting.

CF shares closed up 0.6% higher at $85.90 in in New York, valuing its offer at $40.88 per Terra share.

Terra stock ended 1.1% higher at $39.00.