Whirlpool increases Maytag offer

Whirlpool has set Maytag a Sunday deadline for responding to its offer

Whirlpool has raised its offer for Maytag, the US firm behind the Hoover vacuum cleaner, by $1 (£0.57;0.83 euros) a share to $18.

The decision comes after Maytag had said it would continue to back a $1.13bn (£645m) bid from private equity group Ripplewood.

The new bid from US appliance maker Whirlpool bid values Maytag at $1.44bn.

It has set a deadline of 1800 EST on Sunday for Maytag to respond so that it can start due diligence on its data.

Earnings hit

Whirlpool said it would also be willing to discuss other concerns Maytag may have and might be willing to compensate Maytag for the cost of it breaking its agreement with Ripplewood.

Ripplewood tabled its $14 a share bid in May, but some Maytag shareholders have argued the offer is too low.

Whirlpool's previous $17-a-share offer was made earlier this week. Its $18 a share offer was made on Friday.

Last month, China's biggest appliance maker, Haier, dropped out of the bidding race for Maytag.

Maytag owns a number of well-known brands, selling goods under the Amana, Jenn-Air, Jade and Dixie-Narco brand names, as well as making Hoover products.

However, it reported lower-than-expected quarterly profit on Friday as sales rises were offset by higher raw materials and energy-related costs.