Great new today! Two of our Emerging Growth stocks are getting hitched.
CF Industries (CF) is offering to buy Terra Industries (TRA) for $2 billion in stock. The proposed deal is that TRA owners will get 0.4235 shares of CF for each TRA share they own. Terra’s board said that it’s considering the deal.
In my opinion, this is a great deal and the TRA folks should take the offer. CF is offering a 23% premium to yesterday’s close. The market apparently thinks Terra will accept since the shares have soared in today’s trading.
What to do now: Both stocks are currently holds in Emerging Growth. Don’t sell. Don’t buy more.