Computer hardware group Radstone said on Monday that it was recommending a 130.4 million pound bid from U.S. based GE Fanuc, and again urged shareholders to reject existing suitor Eurotech.
The company said in a statement that GE Fanuc had offered 410 pence a share for the group, a 13.9 percent premium to the 360p a share bid tabled by Italy's Eurotech last month.
Eurotech tabled two offers for Radstone in August, and has built up a 31.8 percent stake in the company.
After careful consideration, the board has concluded the terms of the GE Fanuc offer to be fair and reasonable, Radstone Chairman Rhys Williams said in a statement.
It has agreed to unanimously recommend the offer, which represents a significant improvement on the E tech offer.
But Radstone shares were up 10.1 percent at 413 pence at 07:50 GMT, suggesting investors consider the battle far from over.
Eurotech said it was considering its position and would make a further announcement in due course.
Williams said that since the two approaches from Eurotech he had been in discussions with more than one potential bidder.
He did not disclose who the other interested parties were, but it has not been ruled out that an offer from yet another group may be tabled.
GE Fanuc is part owned by General Electric and Japan's Fanuc.
We plan to build on Radstone's reputation as a high tech, strategic supplier to the defence industry, GE Fanuc Chief Executive Maryrose Sylvester said in a statement.