BERLIN -- Tognum AG plans to support a raised offer from Daimler AG and Rolls-Royce Group Plc that values the German engine maker at 3.4 billion euros ($4.8 billion), two people familiar with the situation said.
Tognum's management and supervisory boards intend to back the bid after Daimler and Rolls-Royce offered to increase the price 8.3 percent to 26 euros a share, the two people said on condition of anonymity because the discussions are private.
"As soon as there's something new to communicate, we will do so as quickly as possible," Stefan Wortmann, a spokesman for the Germany-based company, said by phone. Florian Martens, a Daimler spokesman, said the company had nothing new to report.
The shares have traded above the initial 24 euro-a-share bid since Daimler and London-based Rolls-Royce made the offer on March 9. Daimler, the world's third-biggest maker of luxury cars, and Rolls-Royce, the second-largest producer of engines, have received acceptances for just 0.02 percent of Tognum's shares, excluding Daimler's existing stake.
Tognum shares fell as much as 17 cents, or 0.7 percent, to 25.88 euros and were down 0.4 percent as of 12:25 CET. in Frankfurt trading, valuing the company at 3.41 billion euros.
Daimler already owns a 28.4 percent stake in the company. The prospective buyers have until tomorrow to officially raise the bid on the tender under German law. The offer can be amended up to 24 hours in advance of the expiry of the tender on May 18.
Investors including ING Groep NV, First Eagle Investment Management and Delta Lloyd Asset Management had backed Tognum's position not to accept the initial bid. Overall, holders of about 30 percent of the manufacturer's shares have rejected the offer, a person familiar with the situation said on April 8.