“Fertilizer maker Terra Industries Inc. on Wednesday rejected a $2.1 billion takeover offer from rival CF Industries Holdings Inc, saying the bid substantially undervalues Terra.
“Our board has unanimously concluded that your proposal is not in the best interests of Terra and our shareholders and we decline to accept it,” Terra Chairman Henry Slack said in a letter to the board of CF Industries.
“CF Industries’ unsolicited all-stock offer, announced earlier this month, values Terra at $20 per share. Combining the two companies would create the world’s largest producer of nitrogen fertilizer.”
Both stocks are up today which may mean that CF will make a counter-offer.