DOW JONES NEWSWIRES
Terra Industries Inc. (TRA) projected third-quarter results
below analysts' expectations amid lower sales volumes and
prices.
The fertilizer company also launched its previously announced
plan to sell $600 million of 10-year senior notes in a private
offering for purposes including debt repayment and a special
dividend.
Terra anticipates third-quarter revenue of about $347 million,
down 56% from a year earlier, with operating earnings falling 59%
to $54.2 million. The mean estimates of analysts surveyed by
Thomson Reuters were for operating income of $101.3 million and
revenue of $359.3 million.
Terra has been involved in the prolonged three-way turf war
between CF Industries Holdings Inc. (CF) which is bidding for
Terra, and Agrium Inc. (AGU), which in turn has its sights on CF.
CF repeatedly has rejected Agrium's approaches in favor of a deal
for Terra.
The fertilizer industry has been struggling since the
commodities boom turned bust last year.
Separately, Terra agreed to acquire roughly half of Agrium's
Carseland nitrogen facility for $250 million if Agrium completes it
acquisition of CF and Terra raises the $600 million. Agrium said it
believes the deal would address Canadian regulatory concerns
related to any takeover of CF.
Agrium President and Chief Executive Mike Wilson said the move
will allow it to keep moving forward with its bid for CF, and urged
CF to begin meaningful discussions regarding its offer. Agrium
extended its offer to acquire CF until 12 midnight EST Nov. 13. As
of 5 p.m. Friday, about 9.1 million CF shares had been tendered and
not withdrawn. CF has about 49 million shares outstanding.
Terra in September said it would pay its shareholders up to $750
million in a special dividend and planned to raise up to $600
million.
Terra shares closed Friday at $36.36, while Agrium was at $53.34
and CF at $90.63. None traded premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;