* CD&R considering offering 1,080p per UDG share
* Latest offer raised from previously agreed deal at 1,023p
* UDG has not received any other bid
* Shares up more than 1% in morning trade
(Adds details from statement, background)
By Pushkala Aripaka and Yadarisa Shabong
June 25 (Reuters) - Private equity firm Clayton, Dubilier &
Rice (CD&R) could increase its offer for UDG Healthcare
to 2.72 billion pounds ($3.79 billion), the London-listed group
said on Friday, following shareholder opposition to a previously
agreed bid.
Ireland-based UDG said the potential 1,080 pence per share
offer would be CD&R's final one, adding that it plans to
recommend the new proposal. In May, both companies had agreed to
a 1,023 pence per share offer.
Private equity firms in recent months have expressed
interest in several British companies as London-listed firms
carry a discount to global peers and the funds see a chance for
handsome returns as the UK economy recovers faster than
expected.
UDG specialises in healthcare advisory, communications,
commercial, clinical and packaging services. It is CD&R's second
takeover target in recent weeks. The fund last week made a bid
for Morrisons which was rejected.
While UDG's board backed CD&R's first offer, its largest
shareholder Allianz Global said last month it planned to reject
the bid as it significantly undervalued UDG. It has an 8.65%
stake in the healthcare group, Refinitiv Eikon data showed.
UDG said on Friday CD&R was engaging with some shareholders
over support for the possible final offer, and confirmed that it
had not received any other buyout proposal, nor was it in talks
with another party.
Its stock was up 1.5% at 1,062 pence by 0800 GMT.
Just weeks after the first offer, activist investor Elliott
took a stake in UDG, while a report in the Financial Times in
May said UDG investor M&G was not in favour of CD&R's prior
offer.
Allianz and M&G did not immediately respond to a Reuters
request for comment on the new terms. Elliott declined to
comment.
RBC, which has a "sector perform" rating on UDG, said in a
note the latest offer was a fair one, and raised its price
target to match the potential proposal.
($1 = 0.7182 pounds)
(Reporting by Pushkala Aripaka and Yadarisa Shabong in
Bengaluru; Editing by Shounak Dasgupta and Elaine Hardcastle)
