TI Fluid Systems PLC (LSE:TIFS) was top of the FTSE 250 leaderboard on Monday after saying it would be prepared to accept a takeover approach at £2 per share, though analysts suggested this still left it undervalued.
US bank Jefferies said the offer was now "in line with what we see as a minimum acceptable offer price".
Previously it said it saw 200-245p as a "sensible" offer range, valuing the company in line with EU peers at the bottom end, and in line more with US peers at the top end.
However, Jefferies noted that even though auto industry conditions have since deteriorated further, it sees 200p as "still undervaluing the company, given TIFS' favourable margin, growth & free cash flow profile/outlook relative to peers".
This morning TIFS released a statement confirming Bloomberg reports yesterday that ABC Technologies had increased its offer price from the last disclosed offer of 176p per share with subsequent all-cash proposals of 188p and 195p, both of which were rejected by the board.
However, following "limited access to management", last Thursday, ABC submitted a fifth proposal, at 200p per share.
Directors of the company, which claims a 102-year-old history thanks to its Bundy Corporation subsidiary that was a supplier of tubes for the Model T Ford in the 1920s, would be minded to recommend the offer to shareholders, leading the 'put-up-or-shut-up' deadline to be extended to 8 November.