Terra (TRA) Favors CF’s (CF) Bid Over Yara’s

The Wall Street Journal reports that Terra Industries, Inc. (NYSE: TRA) considers the latest takeover proposal by CF Industries Holdings, Inc. (NYSE: CF) to be superior to the terms offered by Yara International ASA (ADR) (OTC: YARIY) in its merger agreement.

Terra has also informed Yara that it will end the agreement unless Yara decides to make a better offer within five business days. The CF bid would give Terra $37.15, and 0.0953 a share of CF common stock in exchange for each Terra share, compared with Yara's bid of $41.10 per share.

Yara said its board will evaluate the situation, and decide whether to match CF's offer. If Yara's deal with Terra falls through, it will get a $123 million breakup fee.