CF Industries Holdings Inc. (CF) extended the expiration date of
its exchange offer for all outstanding shares of rival Terra
Industries Inc. (TRA), which the fertilizer producer has been
trying to buy since January.
The latest move comes as three fertilizer producers, which also
includes Agrium Inc. (AGU), are looking to take advantage of the
drop in sector stock prices since last summer to buy up production
capacity ahead of an expected rebound in prices.
In its latest effort, CF extended the offer for Terra's stock to
June 12, shortly after Terra is required to hold its annual meeting
by stockholders. CF said all terms and conditions of the exchange
offer remained unchanged.
As of the market close on Thursday, CF said a total of 19,370
shares of common stock had been tendered in the exchange offer.
Previously, Terra had been required by its own bylaws to hold
its annual meeting by May 15, but earlier this month, the company
amended the bylaws to give it more flexibility with setting the
date.
CF initially offered to buy Terra in January in a deal valued at
$2.1 billion. It later sweetened its bid to $3.07 billion. At the
same time CF has been pursuing Terra, it has been fending off a
takeover bid by larger rival Agrium. On Tuesday, CF shareholders
backed three directors up for re-election at the company's annual
board meeting, signaling an endorsement of the company's
direction.
Earlier this week, Terra Industries reported its first-quarter
net income dropped 70% on falling demand for nitrogen products,
while CF posted a 53% drop in its profit as mark-to-market items
masked improvements in revenue and total volume.
CF's shares were unmoved in after-hours trading at $71.09, as
Terra's shares were even at $27.90.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com