Yara shares rise after bidding war avoided

Oslo: Norway's Yara International shied away from raising its offer for Terra Industries Inc to top a rival bid, boosting its shares but scuppering its US expansion plans.

"Terra would be a perfect fit to Yara and attractive at our proposed valuation, but we will not increase our offer that was first accepted by the Terra board," Chief Executive Joergen Ole Haslestad said in a statement.

Shares in Yara rose 5.6 per cent by 0900 GMT yesterday, with Yara's management seen keeping its cool to preserve shareholder value in avoiding an overseas M&A battle.

Yara had agreed last month to buy Terra for $4.1 billion (Dh15.05 billion) to create the world's biggest mineral fertiliser producer and boost its US presence, as rivals join forces to gain size and reach.

Highs and lows

• 5.6% rise in Yara shares by 0900 GMT
• $4.1b Yara had agreed last month to buy Terra