Yara has received notification from Terra Industries
Yara International ASA (Yara) has received a notification from Terra Industries Inc. (Terra) that the proposal from CF Industries is, in Terra’s view, a superior proposal to the merger agreement signed 12 February by Yara and Terra.
As announced on Feb. 15, 2010, Yara and Terra entered into a merger agreement, pursuant to which Yara agreed to acquire all of the outstanding common stock of Terra for $41.10 per share in cash. The merger agreement may be terminated under certain circumstances, including if Terra receives a superior proposal, as that term is defined in the merger agreement, provides advance notice to Yara and Yara does not match the superior proposal within five business days. The deadline for matching this superior proposal will expire by 17 March at 17:00 New York time. If Terra terminates the merger agreement under such circumstances, Yara will be entitled to a USD 123 million break-up fee.
Yara will have no further comments on the response to Terra on the notification until Yara’s Board of Directors has completed their evaluation.
Source: Yara International