In a new development which could be a good news for Terra Industries Inc., fertilizer giant CF Industries Holdings Inc., has nudged its earlier bid to acquire its rival a little higher. The new bid, mostly cash, is nearly $200 Million higher than the earlier placed hostile quote. The earlier made bid had been an all-stocks offer.

In a statement by CF on Sunday, the firm confirmed that under the new proposal, it will be offering Terra shareholders $32 per share, or a total of nearly $3.2 Billion in cash. The latest bid is $2 higher than CF's previous offer, which was also the 6th bid made by the firm for Terra.

Terra, while acknowledging the receipt of the bid, said that it would take sometime to review the same and respond.

CF has confirmed that a commitment of $2.5 Billion to provide sufficient funds from the takeover has been made by Morgan Stanley. With the transaction, CF, which is itself on its heels fending off a hostile takeover bid from Agrium Inc., is looking to expand more for the coming fiscal year.