Management of IT staff provider FDM Group has increased its indicative bid from 120p to 135p a share.
Shares in FDM rose 12p to 124.5p each, which values the company at £28.9m. FDM may have to pay an inducement fee of up to 1% - presumably if the bid is not accepted or does not go ahead.
A 135p a share bid values FDM at eight times last year’s earnings. Interim profits fell slightly but, even if there were a sharper downturn in the second half, the multiple is still likely to be in single figures.
The management team of Ivan Martin, Rod Flavell, David Templeman, Sheila Flavell and Andy Brown is backed in its bid by funds managed by Inflexion Private Equity Partners.
Independent director Karl Monaghan has given permission for due diligence to be undertaken by the bidders.
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