Terra asks shareholders to reject CF offer

Terra Industries Inc., the largest U.S. maker of liquid-nitrogen fertilizer, asked shareholders to reject Deerfield-based CF Industries Holdings Inc.'s hostile $2.65 billion takeover offer.

The bid "substantially undervalues" Terra and runs counter to the company's objectives, Sioux City, Iowa-based Terra said in a letter released Thursday.

The offer also is unlikely to be approved by CF's shareholders because it is the target of a bid by Agrium Inc., the company said.

CF took its all- stock offer, which expires May 15, directly to Terra's shareholders last week after the board rejected it.