Feb 23 Reuters Australia39;s Nitro Software Ltd said on Thursday that private equity firm Potentia Capital raised its takeover offer for the software maker to A532.3 million about 364 million, trumping a rival offer by KKR Inc backed Alludo.

Potentia and Alludo have been involved in a bidding war for Nitro since last October, as high inflation and weak consumer demand have made technology firms potential buyout targets.

In the latest salvo, Potentia, which has a 19.31 stake in Nitro, offered A2.17pershare, trumping Alludo39;s offer of A2.15, which Nitro shareholders rejected a few weeks back.

Potentia39;s latest offer was superior to Alludo39;s, Nitro39;s board said, despite it being at the lower end of the A2.20 to A2.30pershare bid that had been signaled earlier.

Nitro39;s board, however, recommended shareholders take no action on either offer.

Potentia39;s offer is conditional on Nitro39;s board unanimously recommending its shareholders accept the latest offer, in the absence of a superior proposal.

If the offer is declared unconditional, Nitro shareholders that accept the current bid will receive any subsequent increase in the offer price to A2.20 or A2.25, Potentia said.

Nitro39;s shares were largely flat at A2.20 as at 0448 GMT.

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Reporting by Harish Sridharan in Bengaluru; Editing by Savio D39;Souza

Source Reuters