"As IFM's revised offer is 10¢ per share higher than that offered by Acciona, the independent directors of Pacific Hydro have unanimously recommended that all shareholders accept IFM's revised offer," IFM said.

Both of the latest offers are conditional on acceptances of more than 50%.

Acciona's original takeover offer for Australian renewable energy company Pacific Hydro in late March was $4.50. After several weeks IFM responded by bidding $4.60 a share. Acciona upped the ante late yesterday and IFM has now wasted little time in responding.

Pacific Hydro's second biggest shareholder, AEP Investments Inc, which owns 15.7% of the renewables company, had accepted the increased Acciona offer before IFM could respond.

Acciona said from Madrid that owning Pacific Hydro would give it a platform for growth in the Asia-Pacific region, including a large expansion opportunity for its wind-turbine manufacturing.

But IFM has said it was determined to win control of Pacific Hydro.

Pacific Hydro has about 230 megawatts of installed generation capacity, with wind farms in Victoria and six hydroelectric power plants in Australia and the Philippines.

As well as hydropower schemes being built in Fiji and the Philippines, Pacific Hydro is planning to build another 600 MW of wind generation capacity in Australia and over 700 MW of hydro and wind generation in Chile.

In late March Acciona made an A$4.50 a share takeover offer for Pacific Hydro, but was topped last week when IFM, which holds a 31.6% stake in Pacific Hydro, offered A$4.60 a share.

Trading in Pacific Hydro shares had been halted until the start of Australian Stock Exchange trading on Monday, the company said in a statement yesterday, but this has now been extended until Tuesday. Pacific Hydro shares last traded at A$4.67