A subsidiary of Europe's biggest dairy group Lactalis has raised its offer for Egypt's Arab Dairy to E£65.75 per share, topping the latest rival bid from Pioneers Holding.

The revised bid values Arab Dairy at E£395 million ($51.77 million) compared with around E£385 million for the latest Pioneers offer.

Egypt's market regulator said in a statement it had accepted the new bid from the Lactalis subsidiary, called Al-Nour for Dairy Industries, and had extended the deadline for new bids to February 22.

Pioneers, a financial firm that already owns 25 per cent of Arab Dairy, increased its offer for the company to E£64.30 per share a week ago, on February 8, topping the previous offer of E£63 from Lactalis.

Pioneers originally bid E£56 a share for the Egyptian cheesemaker in August but has been forced to increase its offer price after a slew of rivals entered the fray.

The battle for control of Arab Dairy is part of a recent flurry of activity on Egypt's stock exchange, signalling resurgent interest from international investors in a market looking to restore confidence after the turmoil unleashed by a 2011 uprising which ousted leader Hosni Mubarak. - Reuters