Melrose Industries went hostile in its £7.4bn takeover offer for engineering group GKN after meeting with the target's shareholders.
GKN shareholders would be offered 1.49 new Melrose Shares and 81p in cash for each GKN share.
The offer now valued the shares at 430.1p, up from a previous value of 405p, Melrose said
"Since our approach was announced, the Melrose share price has risen as the market digests the attractive opportunity our proposal represents," Melrose chief executive Simon Peckham said.
"As a result the implied premium has grown from approximately 24% to approximately 32% since our approach."
GKN said the terms of the offer were effectively unchanged from Melrose’s original approach.
"We believe GKN’s current owners should retain all the benefits of the clear upside potential in GKN, rather than handing almost half of this upside to Melrose and its shareholders," GKN chief executive Anne Stevens said.
"We have already stated that the terms of Melrose’s offer fundamentally undervalue the company and we are actively engaging with shareholders to explain how our transformation plan will provide value.”
(LON:GKN) GKN PLC share price was -0.4p at 441.6p
(LON:MRO) Melrose PLC share price was -2.4p at 231.9p