Terra soars after CF takeover
Terra Industries Inc., the largest U.S. maker of liquid-nitrogen fertilizer, rose the most in more than eight years in New York after CF Industries Holdings Inc. offered to acquire the company for about $2.1 billion in stock.
Terra climbed $4.44, or 27 percent, to $20.73 at 10:02 a.m. in New York Stock Exchange composite trading. A close at that price would be the biggest gain since July 27, 2000. Sioux City, Iowa-based Terra plunged 65 percent last year.
Terra investors would exchange each share for 0.4235 of a share of CF Industries in the deal, which would create the world's largest publicly traded nitrogen producer, Deerfield-based CF Industries said yesterday in a statement.
CF's offer represents a premium of 34 percent based on the 30-day volume-weighted average prices for shares of both companies, CF Industries said yesterday. The combination would generate more than $100 million in savings within two years, CF Industries Chief Executive Officer Stephen Wilson said today on a conference call with investors and analysts.
CF Industries rose $1.27, or 2.7 percent, to $48.50. The shares fell 55 percent last year.