CF Industries extends financing for Terra takeover

CF Industries Holdings Inc. extended until Dec. 31 the $2.5 billion of financing commitments it attained to acquire rival fertilizer maker Terra Industries Inc.

CF doesn't have a right to extend the financing beyond that date unless it signs a merger agreement with Terra, Deerfield-based CF said today in a statement.

Terra rejected CF's most recent takeover offer last month, turning down a bid that would be valued at about $4.08 billion based on yesterday's closing share prices. CF has sought to buy Terra for more than 10 months and is fending off a hostile bid from Agrium Inc.

At stake in the three-way battle is whether Agrium or CF will become the world's second-largest publicly traded maker of nitrogen-based fertilizers after Yara International ASA of Norway.

Separately, Terra gave the final vote tally from the Nov. 20 election in which three directors supported by CF were added to its board. The CF-supported directors received votes representing about 45 percent of the outstanding shares, Terra said today in a statement. That support included the 7 percent of Terra's shares that CF owns, Terra said. Terra's nominees received support of about 36 percent of the outstanding shares, the company said.

CF rose $1.18, or 1.4 percent, to $86.54 at 10:35 a.m. in New York Stock Exchange composite trading. Sioux City, Iowa- based Terra gained 65 cents, or 1.7 percent, to $39.23.