UDG Healthcare's largest shareholder said today it plans to back Clayton, Dubilier & Rice's offer for the company if the private equity firm raised its bid to £2.72 billion.
Allianz Global, which had intended to vote against the previous £2.6 billion offer from CD&R, owns an 8.6% interest in UDG.
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 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.
Today's deal is CD&R's second takeover target in recent weeks.
The fund earlier this month made a bid for UK supermarket group 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.
UDG specialises in healthcare advisory, communications, commercial, clinical and packaging services.
It has strong market positions in the pharma services space and it employs around 9,000 people in 29 countries.
Both its Ashfield and Sharp businesess operate in large and growing markets, underpinned by continued growth in new drug development and approvals, increasing therapeutic and drug complexity and continued outsourcing from pharma and biotech clients.
