Borland (NASDAQ:BORL)
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Business software company Micro Focus International PLC (MCRO.LN) Wednesday said it had raised its offer for Texas, U.S.-based software company Borland Software Corp. (BORL) to $1.50 a share, valuing the company at around $113 million, after a second suitor approached Borland last week.

The higher bid, which is backed by both the Micro Focus and Borland boards, is the third time Micro Focus has had to lift its offer, from a starting bid of $1 a share in May.

The second bidder, who hasn't been identified, last Thursday submitted a non-binding offer of $1.25 a share for Borland and indicated it could complete due diligence in two weeks from June 24.

Micro Focus is due to hold a shareholder meeting July 17 to approve the deal, while Borland has a meeting scheduled for July 22.

"There continues to be a strong strategic rationale for this transaction and we believe that it is in the best interests of both companies, their shareholders, employees and customers," said Micro Focus chief executive Stephen Kelly. He said that regulatory and shareholder approval processes are progressing well.

The increased bid will have a minimal negative impact on earnings compared with Micro Focus' original bid, but it remains to be seen if the latest offer will be enough to secure the company, Numis analysts said.

Further bids could weigh on Micro Focus shares, but Singer analyst Tintin Stormont still expects it to win out in the end.

Once a software heavyweight and Microsoft Corp (MSFT) rival, Borland's operating losses have grown over the last two years; it reported a net loss in the year to Dec. 31 of $216 million.

Micro Focus management said at the time of the acquisition announcement it has a "clearly defined plan to address the financial and operating performance of Borland, with a view to repositioning the business to achieve acceptable returns on sales and investment."

Micro Focus last month also bought Compuware Corp.'s (CPWR) testing and automated software quality business and both acquisitions would give Micro Focus a footprint in software testing which makes sure software works properly when it is in development.

At 0855 GMT, Micro Focus shares were up 0.3%, or 1 penny, at 376p.

-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293; kathy.sandler@dowjones.com