Notable Mergers and Acquisitions of the Day 1/16: CF/TRA, IBM, PCR

January 16, 2009 9:42 AM EST

• Late Thursday, CF Industries Holdings, Inc. (NYSE: CF) announced an offer to acquire all of the outstanding common shares of Terra Industries Inc. (NYSE: TRA) in a stock deal worth $2.1 billion.
  
  The transaction would create a leader in the global fertilizer industry.
  
  Under the proposal, each common share of Terra would be entitled to receive 0.4235 shares of CF Industries. The proposal also represents a 23% premium over the closing price of Terra shares on January 15, 2009.
  
  CF Industries said the transaction is expected to generate more than $100 million in annual cost synergies from reducing SG&A by combining overlapping corporate functions and optimizing transportation and distribution systems to improve efficiencies and reduce costs, and through greater economies of scale in procurement and purchasing.
  
  The transaction is expected to be accretive to current CF Industries stockholders in the second year following the close.
  
  Terra has yet to respond to the offer, but CF disclosed in a letter that Terra approached them about a takeover "several years ago."
  
  
• IBM (NYSE: IBM) has announced its intent to acquire the strategic messaging service assets of Outblaze, Ltd., a privately held provider of online messaging and collaboration services, based in Hong Kong. Building on IBM Lotus' market leadership in messaging software, the asset acquisition will accelerate the delivery of affordable, Web-based e-mail services in a software-as-a-service (SaaS) model.
  
  With more than 10 years of experience, Outblaze was one of the first companies to offer a fully hosted multilingual e-mail service and now supports over 40 million users.
  
  
• Perini Corporation (NYSE: PCR) announced that it has completed the acquisition of Keating Building Corporation, a privately held construction, construction management and design/build company, with anticipated fiscal year 2008 revenues of approximately $425 million and a backlog of $860 million. Under the terms of the transaction, Perini acquired 100% of the company's stock for $43 million in cash plus an amount to be determined based on the operating results for 2009 - 2011.

To see all the Mergers & Acquisitions for today in real-time go to http://www.streetinsider.com/Mergers+and+Acquisitions

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