Terra Industries Inc. (TRA) Gains 22.50% After A Buyout By A Foreign Company

A Norwegian fertilizer producer, Yara International, decided yesterday to buy Iowa-based Terra Industries Inc. (NYSE: TRA) for $4.1 billion to increase its presence in the United States. The deal values Terra Industries Inc. (TRA) at $41.1 a share, representing a premium of 23.6% compared with Friday’s closing price.

The 23.6% premium to Friday’s closing led to a gap-up opening for Terra Industries Inc. (TRA) on Tuesday, as the stock had already soared by 22.47% by early afternoon on Tuesday to $40.72, near the value of acquisition deal.