French retailer Fnac raises offer in agreed deal for Darty

PARIS (Reuters) - Books and music retailer Fnac said on Friday that it had raised its offer for electrical goods company Darty in an agreed deal that would create a French market leader in white goods.

The companies said in a statement that the new offer of about 116 pence per Darty share, up from 101 pence, valued Darty at about 615 million pounds, against 533 million previously.

"The boards of Fnac and Darty believe that the proposed transaction will benefit both groups and represents a unique value creation opportunity for both Darty and Fnac shareholders," the statement said.

London-based Darty's board is ready to recommend any firm offer from Fnac unanimously to its shareholders, the companies said.

The offer also has the support of Knight Vinke Asset Management, which holds 14.34 percent of Darty, and DNCA Finance, which holds 9.29 percent, the companies said.

Darty shareholders will be entitled to one Fnac share for every 37 Darty shares held. Fnac will also make available a partial cash alternative of as much as 95 million euros.

Darty shareholders would end up holding up to about 46 percent of the share capital of the combined group. They would also be entitled to a final dividend of 2.625 euro cents payable on Nov. 13.

Fnac has agreed to a break fee of 12 million euros payable to Darty if the transaction fails to close.

Darty is Europe's third-largest electrical goods retailer, with some 400 stores in Europe. It earns 70 percent of its revenue in France and competes with Metro's Media-Saturn and Britain's Dixons.

(Reporting by James Regan; editing by Jason Neely)