M&A

4 November, 2009

UPDATE 1-Terra rejects CF Industries' latest proposal

* Says CF's proposal is inadequate

* Says offer not in best interests of its shareholders

TORONTO, Nov 4 (Reuters) - U.S. fertilizer maker Terra Industries (TRA.N) said on Wednesday it's board has reviewed CF Industries (CF.N) latest takeover proposal and unanimously rejected it as inadequate.

CF, which has been pursuing Terra since January, raised its bid for Terra on Sunday and changed the structure of its offer to mostly cash. [ID:nN01407402]

CF is itself currently fending off a hostile bid from Canadian fertilizer maker and agricultural products retailer Agrium Inc (AGU.TO).

Sioux City, Iowa-based Terra said CF's latest proposal continues to undervalue Terra's near term and long term prospects. The company labeled the offer as opportunistic and not in the best interests of Terra and its shareholders. (Reporting by Euan Rocha, editing by Dave Zimmerman )

Source: http://www.reuters.com