U.S. diversified manufacturer Manitowoc has increased its offer for British kitchen equipment maker Enodis to 1.08 billion pounds ($2.1 billion) to trump a rival offer.
Manitowoc said on Monday that it was offering 294 pence a share for Enodis, topping an agreed bid of 282 pence a share from U.S. rival Illinois Tool Works. Enodis shares rose 2 percent to 304 pence.
The offer from Illinois Tool Works beat a bid of 260 pence a share from Manitowoc .
Enodis, which makes fryers for fast food groups such as McDonald's and Burger King, will also pay an interim dividend of 2 pence a share.
Manitowoc said that, assuming the deal is completed in the second half of 2008, it is expected to be earnings enhancing in two years.
The increased offer represents a premium of 108 percent to Enodis' closing price on April 8, the day before it entered into an offer period.
Manitowoc called on Enodis' directors to recommend unanimously that shareholders vote in favor of the improved offer, which is conditional on approval by U.S. and European antitrust authorities.
Manitowoc said it has committed funds to finance the increased offer from its backers JP Morgan, Deutsche Bank, Morgan Stanley, and BNP Paribas.