Terra Industries Inc. on Monday said its board rejected CF Industries Holdings Inc.'s latest sweetened hostile buyout bid, saying it "continues to substantially undervalue Terra."
The fertilizer producer said its board "believes the market consensus is shifting to reflect the brighter near-and long-term prospects for the entire sector, and that the latest improvement to CF's bid does not fully reflect these brighter prospects," Terra said in a statement.
Last week, CF increased the cash portion of its offer, raising the entire value of the bid to $4.6 billion.
CF, based in Deerfield, Ill., offered to pay $36.75 in cash _ including a special dividend of $7.50 per share declared by Terra in September _ plus 0.1034 of a CF common share for each Terra share. Its previous bid included $32 a share in cash.
The combined value of the new bid and the dividend is $45.91 a share.
Terra has been fighting off CF's buyout attempts since the start of the year.
Shares of Terra slid 14 cents to $35.16 in morning trading. CF shares lost 7 cents to $89.92.