Enodis, the kitchen equipment maker that rejected a £796m takeover offer from its American rival Middleby last weekend, is to receive a more generous bid from another competitor, Manitowoc.
David McCulloch, Enodis' chief executive, and his advisers at Credit Suisse can expect an offer of 220p a share within days. That would value the maker of fryers and fridges for MacDonald's and Burger King at £880m.
Yesterday, Enodis was valued at £789m after the shares climbed 15.5p to 197.5p. They have more than quadrupled in value in the past three years.
Mr McCulloch dismissed Middleby's earlier 195p-a-share conditional offer as significantly undervaluing the company, despite being pitched at an 11 per cent premium to the then share price.
On Tuesday, Enodis moved to justify its rejection of Middleby's advances with a 71 per cent jump in pre-tax profits to £24.4m in the six months to April. Sales rose to £354m from £308m over the same period a year before.