Unless Yara International can up its bid for fertilizer maker Terra Industries (TRA), a takeover bid made by CF Industries Holdings (CF) will likely win out. Yara has five days to increase its all-cash offer of $4.1 billion to exceed the bid from CF Industries of $4.72 billion in cash and stock.
Under the terms of the bid from CF, Terra would receive $37.15 and 0.0953 CF share for each share of Terra. This compares to Yara’s bid of $41.10 in cash.
Yara has said its board of directors will look into the deal and determine whether or not to match or beat the offer from CF. If not, Terra will be forced to pay a $123 million “breakup” fee for backing out of the deal with Yara.
