News: IFN UPDATE 1-Iberdrola raises bid for Infigen as takeover race heats up

(Recasts with Iberdrola's new offer)

June 29 (Reuters) - Spain's Iberdrola IBE.MC raised its bid for Infigen Energy (IFN) by three cents a share on Monday, upping the ante in its race against Philippine conglomerate Ayala Corp AC.PS to buy the Australian renewables firm.

Iberdrola raised its offer price to A$0.89 per share, marginally above Infigen's Friday close of A$0.885, valuing the wind and solar firm at A$856.3 million ($587.6 million).

The increased offer came minutes after Ayala had declared its bid unconditional by removing riders proposed in its initial A$0.80 per share approach, which had irked Infigen.

The Australian company was already backing a higher, less conditional offer from Iberdrola before the Spanish company lodged a fresh bid on Monday.

Analysts had forecast a bidding war as the firms look to bag Infigen's seven wind farms and a large pipeline of projects which are currently on hold.

Its stock has jumped 50% since Ayala's bid on June 3 and continues to trade above the Philippine firm's offer price. ($1 = 1.4584 Australian dollars)