• Nortel Networks Corp. (NRTLQ) said it plans to slash 3,200 jobs as part of the company’s efforts to climb out of bankruptcy protection. “With the unprecedented economic environment and resultant impacts on revenues, significant changes are required to regain our financial footing,” Chief Executive Officer Mike Zafirovski said in a statement, Bloomberg reported. “Tough decisions are being made to restructure the company and work towards a successful emergence from creditor protection.”

• Seed and fertilizer producer Agrium Inc. (AGU) made an unsolicited $3.6 billion bid for CF Industries Holdings Inc. (CF), a nitrogen and phosphate fertilizer producer. The $72-a-share proposal is 30% more than CF’s Tuesday closing price, and is a shot to dissuade CF from buying rival Terra Industries Inc. (TRA), Bloomberg reported.

• Ambac Financial Group Inc. (ABK) posted a $2.34 billion, or $8.14 a share, fourth-quarter loss. The bond insurer set nearly $1 billion aside for losses tied to residential mortgage debt, Reuters reported.

• U.S. President Barack Obama yesterday (Wednesday) nominated former Washington State Gov. Gary Locke – a Democrat with strong ties to China – as his choice for U.S. Commerce Secretary, the Voice of America reported. Locke, the son of Chinese immigrants, served two terms as Washington’s governor, making him the first Chinese-American governor in the United States. Locke was a strong proponent of trade with China during his time in office, and led several trade missions to the country. Two prior candidates withdrew – one over an ethics probe and the other over political differences with the new president

• Crude oil continued to rise yesterday (Wednesday) climbing $2.54, more than 6%, to settle at $42.50 a barrel on the New York Mercantile Exchange. The rally came after gasoline inventories showed a 1.7% rise in demand.

• The San Francisco Chronicle, founded during the gold rush of the mid-19th century, could be shut down, Reuters reported. The paper lost more than $50 million last year and this year’s losses to date are worse, according to its owner, Hearst Corp. “Survival is the outcome we all want to achieve,” said Hearst Corp Chief Executive Frank Bennack Jr. “But without the specific changes we are seeking across the entire Chronicle organization, we will have no choice but to quickly seek a buyer for the Chronicle or, should a buyer not be found, to shut the newspaper down.”

Source: Global Investment News Briefs Thursday, February 26, 2009

This from Investment U:

What do a Wall Street analyst and a corn farmer have in common?  They both know that fertilizer prices have fallen off of a cliff.

Last year, a big increase in the demand for nitrogen-based fertilizers led the price of fertilizer and the value of the companies that make it, to triple-digit gains.

But when the commodities market cooled, fertilizers were no exception. Since then, the prices of fertilizer – and the companies that produce them – have dropped straight back to Earth.

Take a look…

That’s why CF Industries’ (NYSE:CF) recent announcement made such big news. Amid collapsing share prices and notoriously tight credit for mergers and acquisitions, CF Industries announced Friday an offer to buy out smaller-player Terra Industries (NYSE: TRA).

Terra Industries popped 27% on the news, and CF Industries rose 2.73%.  Normally, a buyer taking on a pile of debt to finance a deal that may or may not work out will see a little bit of a decline.

But two things are at play here:

1) The market thinks this is a good fit.

CF Industries expects to save $100 million over two years by combining forces. That’s nothing to sneeze at for a company that would have combined revenues just over $6 billion. This puts CF in position to maintain a much more competitive position over bigger players like Potash Corp. (NYSE: POT) and Terra Nitrogen (NYSE: TNH).

2) The future for fertilizer will be like the past.

Unfortunately, food production is going to be a major global problem for the next few decades. It will quite possibly be the biggest problem our species will ever face. And one of the only ways currently available to increase production is to load up on powerful nitrogen fertilizers. And since supply is finite, long-term prices have only one way to go.

Fortunately for CF Industries and other fertilizer companies, this spells profits. And for CF, the purchase of Terra Industries has likely improved their position to compete in that niche.

Source:  Stock of the Day: CF Industries (NYSE: CF)