CF Industries Resumes Pursuit of Terra Industries with $4.75 Billion Buyout Offer (CF, TRA)

in Gold Gold Investing Gold Investment by admin — March 2, 2010 7:19 am | no comments

Fertilizer maker CF Industries Holdings, Inc. ( CF ) on Tuesday raised its bid to buy rival Terra Industries Inc. ( TRA ) to $4.75 billion, which trumps the recently-accepted takeover bid from Norway-based Yara International. CF’s new bid is for $37.15 in cash and 0.0953 of a share of CF Industries common stock for each share of Terra, for a grand total of $47.40 per share. Terra shares had closed at $41.20 on Monday. Last month, Terra had agreed to a buyout by Norwegian fertilizer maker Yara International for $4.1 billion in cash. Now, CF is trumping that bid, thus rekindling of its long-time pursuit of Terra, which it had called off in January. Prior to the CF, had pursued Terra for several months, with Terra repeatedly rejecting the company’s advances as undervaluing its business. CF Industries shares plunged $6.29, or -5.9%, in premarket trading Tuesday, while Terra Industries shares jumped $5.40, or +13.1%. The Bottom Line We had removed shares of CF from our “recommended” list back on Sept.21, when the stock was trading at $90.19. The company has a .37% dividend yield, based on last night’s closing stock price of $107.54. The stock has technical support in the $95 price area. If the shares can snap back from this morning’s drop, we see overhead support around the $110-$120 price levels. We would remain on the sidelines for now. Neither CF Industries Holdings, Inc. ( CF ) nor Terra Industries Inc. ( TRA ) are currently recommended, with both stocks holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .