Paradise's Blog

CF Returns to Terra Fray

06:03, 1969-Dec-31 .. 0 comments .. Link

CF Returns to Terra Fray CF Returns to Terra Fray But an about-face by CF has brought it back with a new unsolicited bid worth $4.7 billion, or $47.40 a share. This leaves uncomfortable questions all around.

Terra needs to respond soon. #xThe company did not seem very interested in being sold to CF a few months ago. But then in February, Terra accepted a slightly higher cash bid from a Norwegian competitor, Yara International.

CF’s new bid contains a stock component,#x but it is currently worth about 15 percent more than Yara’s $4.1 billion. At the very least,Compact fluorescent lamp, Carbon fiber body kitTerra’s shareholders may wonder whether the company’s board could squeeze more out of Yara.

CF also has some explaining to do. It explicitly stated just six weeks ago that continuing to raise its bid for an unwilling target would not be prudent. Now it is doing just that.

True, CF’s earlier analysis assumed that Terra wasn’t interested in selling to anyone — and the math has changed somewhat. Even so, Carbon fiber body kitCF might have been smarter not to come back into the fray.

Even Terra’s advisers have stated in a fairness opinion that the company is worth at most $47.55 a share. Under three different measures —Carbon fiber body kit discounted cash flow, industry multiples of earnings before interest, tax, depreciation and amortization, and a look at similar transactions — the CF bid comes in close to the top valuation. Investors seem to be worried that CF could be overpaying. The company’s shares fell 4 percent by midday on Tuesday before recovering most of their losses. 相关的主题文章：