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Environment

CF's Sweetened Offer Tempts Terra

by Melody Voith
March 15, 2010 | A version of this story appeared in Volume 88, Issue 11

Fertilizer producer Terra Industries was courted by rival firm CF Industries for more than a year before it accepted a $4.1 billion buy-out offer from Norway’s Yara International. But CF did not give up: It has submitted a counteroffer for Terra of cash and CF stock valued at $4.7 billion (C&EN, March 15, page 18). Terra’s board of directors now says the sweetened deal is a superior proposal. According to Terra’s agreement with Yara, the Norwegian firm has until March 17 to submit a new offer. If Terra accepts the CF deal, it will owe Yara a $123 million break-up fee.

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