CF Industries Ups Bid for Terra

DEERFIELD, Ill. (TheStreet) -- The courting of Terra Industries(TRA Quote) continues.

On Sunday night, rival fertilizer concern CF Industries(CF Quote) made yet another offer to acquire Terra, this time increasing the cash portion of its last bid.

CF is offering $32 a share in cash and 0.1034 of a share in CF Industries for every one of Terra. CF said that puts the value of the bid at $40.61, better than the previous $40 value, which CF had presented to Terra at the end of September.

CF said the current offer is worth about 7.1 times Terra's trailing 12-month earnings before interest, taxes, depreciation and amortization and represents a 28% premium to the closing price of Terra shares on Friday.

Further flaunting the seriousness of its bid, CF said in the Sunday press release that Morgan Stanley had agreed to put down $2.5 billion in financing for the deal.

Terra's management responded with an obligatory statement saying its board of directors was reviewing the offer's terms.

Terra has repeatedly spurned CF's advances -- five times at last count; CF has, in turn, pursued Terra as a way to thwart its own hostile suitor, Agrium(AGU Quote).