UPDATE 3-Yara counts cost of failed merger talks with CF
(Updates share, adds Yara acting CEO, analysts)
* 50-50 merger would not reflect CF capacity expansion-source
* Our strategies, outlooks were too different -Yara CEO
* Yara lost two chief executives during talks
By Soyoung Kim and Joachim Dagenborg
NEW YORK/OSLO, Oct 17 (Reuters) - CF Industries ended merger talks with Norway's Yara International that would have created a $24.5 billion fertilizer producer, leaving Yara with nothing to show for a short-lived courtship that cost it two chief executives.
Chicago-based CF and Yara failed to agree the terms of a "merger of equals" to create a rival to market leader, Canada's Potash Corp.
CF concluded that an all-stock deal did not adequately reflect the value of its near-term capacity expansions, said a person familiar with the matter after the breakdown of talks that were announced less than four weeks ago.
CF believed that a deal would require a share exchange ratio that exceeded the levels discussed when the two companies first started negotiations and would have to give it a meaningfully higher ownership than 50 percent, said the person, asking not to be named because the matter is not public. Continued...