NEW YORK, March 11 Fertilizer maker Terra Industries Inc TRA.N rejected on Wednesday a revised hostile takeover offer from rival CF Industries Holdings Inc (CF.N), saying the bid is too low and runs counter to its strategic objectives.
CF is itself fending off an unsolicited bid from Canadian fertilizer company Agrium Inc (AGU.TO)(AGU.N), which has made its offer contingent on CF dropping its pursuit of Terra.
In a letter to CF's chief executive, the company said its offer "continues to run counter to Terra's strategic objectives, substantially undervalues Terra both absolutely and relative to CF, and would deliver less value to our shareholders than would owning Terra on a stand-alone basis."
Illinois-based CF's revised bid would make sure Terra shareholders would get at least $27.50 a share, or more, as long as CF's shares trade above Friday's closing price of $60.59.
CF has offered an exchange ratio of not less than 0.4129 of a CF share and not more than 0.4539 of a share. The company previously offered 0.4235 of its own shares for every share of Terra. (Reporting by Michael Erman; Editing by Andre Grenon)