Lifeway Foods (LWAY) was up almost 6% in mid-afternoon trading Friday after Danone North America increased its buyout offer for the yogurt, kefir and probiotics company by 8% to $27 per share.

Lifeway last week rejected Danone's original acquisition offer of $25 per share and adopted a "poison pill" shareholder rights plan, explaining that the Sept. 23 proposal by the specialty foods and beverage firm significantly undervalued the company.

Danone already owns about 23.4% of Lifeway's outstanding shares and disclosed the higher offer for the remaining shares in a regulatory filing Friday. Danone also said it wants to begin direct negotiations with Lifeway and its financial advisors and may engage other shareholders about a potential deal.

Danone expects to fund the proposed cash transaction entirely with cash from its existing reserves, it said, adding its offer is not contingent on any financing requirements.

Price: 23.70, Change: +1.31, Percent Change: +5.85