Manitowoc ups offer for Enodis

US food service group Manitowoc has increased its offer for UK-based ice-machine maker Enodis to 296p per share.

The bid comes after a rival offer from Illinois Tool Works (ITW) on May 8th, and values the transaction at $2.4 billion (£1.2 billion).

The offer is at a five per cent premium to ITW and a 63.7 per cent premium to Enodis's average closing price for the 12 months ending April 8th, 2008, Manitowoc said.

It includes a 2p dividend per Enodis share in lieu of an interim dividend in respect of the financial year ending September 30th, 2008.

Glen Tellock, Manitowoc president and chief executive officer, said: "Following the current recommended bid for Enodis announced on May 8th, 2008, we reconsidered our options carefully and reaffirmed that there is significant strategic merit in bringing these two strong organizations together."

Enodis supplies equipment to the restaurant industry, including frying systems to McDonalds, as well as ice machines and ovens all over the world.

Manitowoc, which also makes ice machines, made an offer for Enodis in April for 260p per share. A tie-up with Enodis would give the company access to the 'hot' side of the restaurant equipment market.

Although Enodis's board accepted the offer, it then received a higher bid from ITW of 282p earlier this month, and changed its alliance accordingly.

Manitowoc said the successful integration of the two businesses will result in improved growth prospects and the opportunity to deliver significant synergies.

Shares in Enodis rose on the increased bid, and currently stand at 305p on the London Stock Exchange – higher than either bid, and possibly signalling that investors believe a higher offer is yet to be made.