LONDON, March 12 (Reuters) - Melrose Industriesincreased its hostile offer for GKN to 8.1 billionpounds on Monday by boosting the equity element of the offer,appealing to investors after the British engineering firm strucka rival deal of its own last week.
Melrose, a UK-based turnaround specialist, said on Mondaythat GKN investors would receive 81 pence in cash for every GKNshare they hold, plus 1.69 new Melrose shares under its offer,upping the equity part of the deal from 1.49 new Melrose shares.
Melrose said the latest offer, up from its earlier proposalof 7.4 billion pounds ($10.3 billion), was final and would notbe increased under any circumstances.
The board of GKN, a maker of parts for use by car and planemakers, has been battling to show shareholders that it cancreate more value for them with its own plan for the companysince January when Melrose first approached it.
As part of its defence, GKN struck a $6.1 billion deal onFriday to merge its automotive business with U.S. company DanaIncorporate, offering GKN shareholders a 47.25 percentstake in the enlarged, U.S.-listed group.
Melrose said that the deal with Dana was"ill-thought-through" and would face regulatory hurdles.
The deadline for GKN shareholders to accept its offer isMarch 29, it said, adding that it encouraged shareholders toaccept its offer and help create a "UK-listed manufacturingpowerhouse with very significant future potential".
"We are more convinced than ever that the Melrose team, whohave decades of experience in successfully transformingbusinesses, are the only real choice of team to re-energise andre-focus GKN to unlock its full potential," Melrose said in itsstatement.
($1 = 0.7209 pounds)(Reporting by Sarah Young; editing by Kate Holton)