News: MDL UPDATE 1-Australia's Mineral Deposits rejects higher Eramet offer

(Adds share movement, context on deal)

June 14 (Reuters) - Mineral sands producer Mineral Deposits (MDL) on Thursday advised its shareholders to reject an increased takeover bid from French miner Eramet SA ERMT.PA , saying that it continued to undervalue the company.

Eramet on Wednesday increased its all-cash offer for Mineral Deposits to A$1.75 a share from A$1.46 per share previously. The revised offer valued Mineral Deposits at about A$344.7 million ($260.6 million)

Eramet, which had declared the revised offer as final, could not be immediately reached for a comment.

Mineral Deposits shares were up 1.2 percent to A$1.72, compared with a 0.1 percent decline in the broader market (xjo) .

The proposed acquisition was aimed at consolidating the TiZir joint venture, in which each company has a 50 percent stake. TiZir operates a titanium dioxide and zircon business in Senegal and Norway that predominantly supplies the paint industry.

($1 = 1.3226 Australian dollars)