Tognum backs new bid from Rolls

Tognum's board is backing a sweetened €26-a-share offer from the car and truck maker Daimler and the engineer Rolls-Royce, marking a decisive step in the suitors' bid for control of the German engine-maker. The offer values Tognum at €3.4bn (£3bn), the equivalent of 11.3 times its recent annual core earnings.

The pair have also lowered the bid threshold from 50 to 30 per cent. A takeover will allow Rolls to expand its marine and diesel power business while Daimler will re-establish closer ties with a major buyer of its diesel truck engines, which Tognum retools for specialist purposes.