(Reuters) - Turnaround specialists Melrose (L:MRON) on Wednesday raised its offer for GKN (L:GKN) to 430.1 pence per share or 7.4 billion pounds ($10.18 billion) after meeting the British engineering company's shareholders.
U.S. activist investor Elliott Advisors has urged GKN to talk with Melrose after the company rebuffed a 405 pence per share cash-and-stock offer this month.
Melrose appealed directly to GKN's investors to back its earlier 7 billion pound takeover offer after GKN's board rejected it.
On Wednesday, Melrose made a firm, higher cash-and-stock offer valuing each GKN share at 430.1 pence, based on Melrose's closing price of 234.3 pence per share on Jan. 16.
Under the terms of the deal, GKN shareholders will get 1.49 new Melrose shares for each GKN share and 81 pence in cash, or 430.1 pence.
GKN shares were up 0.7 percent at 444.9 pence following the announcement while Melrose was down 0.98 percent at 231.7 pence at 0820 GMT (9.20 BST).