In order to save the company from hostile bid from the rival company, Air products and Chemicals has increased its bid for buying stake in Airgas Inc.

Now, it is offering $5.5 billion to the company, which is much higher than what the rival has offered.

The current price is around 3 per cent higher than what the offer was earlier. Per share the offer stands at $65.50 as against $63.50 bid. The current price has marked a 50 per cent increase in terms of premium over the closing price of Airgas on February 4.

The first offer that was made during the month of February stood at $60 per share.

And this time around, it is going to be the board of directors of Airgas that will take a decision and not the shareholders, unlike the other times.

If the deal comes out to be successful then this is going to make Air Products the biggest industrial gas company in whole of North America. The deal will also help the company in resurgence after the recessionary period.

Airgas is going to have its AGM on September 15 and a decision will be taken then.