The bidding war for Terra Industries Inc. (NYSE: TRA) heated up yesterday (Wednesday) when the fertilizer company said it preferred a takeover bid from CF Industries Holdings, Inc. (NYSE: CF) to be a "superior proposal" to its agreement with Yara International ASA (OTC: YARIY).
Yara made a $4.1 billion bid for Terra in February, in an all-cash deal valued at $41.10 per share. Per their agreement, Terra can give Yara notice it intends to break the contract, giving Yara five days to provide a better offer. If the break-up goes through, Yara gets a cozy fee of $123 million.
CF came forward March 2 with a $4.75 billion bid -- $37.15 in cash and 0.0953 per share for each Terra share.