Despite dismal fundamentals, obviously input suppliers think there is a future in corn farming.
CF Industries Holdings Inc. increased its offer to acquire rival Terra Industries Inc. to about $4.58 billion as it seeks to increase output of nitrogen fertilizer.I wouldn't count Agrium out just yet, either.
The bid of $36.75 in cash and 0.1034 of a CF share for each share of Terra includes the $7.50 a share dividend Terra declared in September, Deerfield, Illinois-based CF said today in a statement. CF’s previous offer was $32 in cash and 0.1034 of a CF share and also included the dividend.
CF has sought to acquire Terra for more than 10 months while fending off a hostile bid from Agrium Inc. At stake in the three-way battle is whether Agrium or CF will become the world’s second-largest publicly traded maker of nitrogen-based fertilizers after Yara International ASA of Norway. Terra has rejected CF’s previous offers. [More]
Furthermore, index funds are still buying corn, too.