UPDATE 2-Terra bolsters takeover defense with meeting change

(Adds quotes from CF, background, closing prices, byline)

By Michael Erman

NEW YORK, April 14 (Reuters) - Fertilizer maker Terra Industries Inc (TRA.N), which is fighting a hostile takeover by rival CF Industries Holdings Inc (CF.N), amended its bylaws on Tuesday to remove a requirement that it hold its annual meeting by May 15.

Terra's new rules would allow it to delay on holding its annual meeting for which CF Industries has nominated a slate of three directors to Terra's board.

CF itself is the target of a hostile takeover by Agrium Inc (AGU.TO), and Terra said the status of that offer should be a "significant factor" for shareholders to consider at its annual meeting.

The new bylaws only require Terra to schedule its annual meeting some time during the calendar year. It said the "flexibility ... will help to ensure that the company's shareholders will have the relevant information" when the annual meeting is held.

CF had previously asked Terra for an explanation as to why it had not yet scheduled an annual meeting. It said that Terra was required to hold its annual meeting within 90 days of its record date, currently set at March 9.

That would put its current deadline for the meeting in early June, unless Terra resets the record date.

"CF Industries looks forward to the annual meeting where we are confident that Terra stockholders will show their support for a business combination by voting our slate of directors," a CF spokeswoman said.