Fertilizer maker Terra Industries ( TRA - news - people ) said Thursday that its board had rejected a takeover offer from rival CF Industries ( CF - news - people ) for a fifth time.
CF has turned up the heat recently in its relentless acquisition pursuit of Terra, saying earlier this week that it had bought about 7% of Terra's shares, valued at around $247 million. Its latest bid for the remaining stake in Terra was $4 billion.
Terra has continually rejected CF's advances, however, and labeled the latest offer as not being in the best interests of the company or its shareholders.
Terra CEO Michael Bennett said that "over the last nine months, our board has reviewed five proposals from CF--and each time the board has unanimously determined that a combination of our companies lacks compelling industrial logic and runs counter to Terra's strategic objectives."
To complicate matters even more, CF Industries itself has been targeted for a takeover, by fellow fertilized maker Agrium ( AGU - news - people ).
Terra shares fell 24 cents, or 0.6%, in morning trading Thursday, while CF shares were mostly flat.
The Bottom Line
We have avoided shares of TRA since our early June coverage began last year, when the stock was trading at $45.44. The stock has technical support in the $30 price area. If the shares can build further momentum, we see overhead resistance around the $37 to $40 price levels. We would remain on the sidelines for now and avoid this fertilizer "love triangle."
Terra Industries is not recommended at this time, holding a Dividend.com rating of 3.2 out of five stars. CF Industries is not currently recommended either, with a Dividend.com rating of 3.4 out of five stars.
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