CF Industries acquires 7 percent of Terra

CF Industries Holdings Inc. bought about 7 percent of Terra Industries Inc. through open-market purchases and repeated its commitment to acquire the nitrogen- fertilizer maker.

The shares were bought in the past two weeks at a cost of $247 million, Deerfield-based CF said today in a statement. The company also said it would adjust its offer to Terra shareholders of 0.465 of a CF share because of Terra's announced $750 million cash dividend.

"Our acquisition of 7 percent of Terra further demonstrates our commitment to the business combination," CF Chief Executive Officer Stephen Wilson said in the statement.

Sioux City, Iowa-based Terra last week announced plans to pay a cash dividend of $7.50 a share, buy back $330 million of notes and sell an additional $600 million of debt to "recalibrate" its balance sheet. Terra has rejected CF's takeover offers, saying they undervalue the company.

CF, also the focus of a takeover bid from Calgary-based Agrium Inc., rose 55 cents to $84.84 at 9:44 a.m. in New York Stock Exchange trading. CF climbed 71 percent this year through Sept. 25. Terra gained $1.28, or 3.6 percent, to $36.47.