[Dow Jones]STOCK CALL¨ Merrill says Sigma's (SIP.AU) increased...

[Dow Jones]STOCK CALL¨ Merrill says Sigma's (SIP.AU) increased bid for API (API.AU) would add about 4-8% to EPS in the first full year. "We believe the updated bid speaks of SIP's motivation to proceed," it says in a client note. "Despite the increased bid, we believe API board approval will require an offer that is partly funded with SIP scrip." The new bid may flush out any other potential bidders, it says. Approval from the antitrust regulator is pivotal, Merrill says. "However, following a range of discussions with industry contacts and other experts, we believe that the acquisition is likely to receive ACCC approval. Our experience suggests a 70% likelihood of success." Keeps API buy recommendation, A$3.20 price target. Last trade A$2.62. (ABH)