TI Fluid Systems PLC (LSE:TIFS) shares revved up 19% after directors suggested they would accept a takeover bid from Canadian rival ABC Technologies priced at 200p per share, having rejected four lower offers.
The UK car parts maker had rejected "highly preliminary" cash bids from its private equity backed peer at 165p and 176p almost a month ago, which City analysts agreed were on the low side.
ABC, which is owned by private equity giant Apollo, then submitted proposals priced at 188p and 195p per share, which were also rejected, TI said.
Last week, TI said a bid of 200p per share was made, which the board said they "would be minded to recommend it to shareholders" if a firm offer is made.
TI noted that this was 53% higher than its closing price of 130.4p the day before the first bid and 37% above when it first publicly acknowledged its rejection of the initial bid.
To allow ABC to conduct due diligence, an extension has been granted to the 'put up or shut up' deadline for a firm offer to 8 November.
Shares in TI Fluid rose 21% to above 182p in early trading.
** Update: Adds share price **