Removes reference to "takeover" in headline

** British automotive parts supplier Dowlais DWL.L up nearly 10% at 75 pence, highest level since July 26

** Stock top gainer on FTSE 250 index .FTMC

** U.S. autoparts maker American Axle and Manufacturing AXL.N will buy GKN Automotive owner Dowlais in a cash-and-stock deal, valuing the London-listed firm at about 1.16 bln pounds ($1.44 bln)

** Deal values DWL at 85.2 pence apiece, a premium of nearly 25% to the prior close

** According to a joint statement, shareholders of AXL will hold 51% of the combined entity, while DWL shareholders will own about 49%

** In 2024, DWL fell ~37%

($1 = 0.8034 pounds)

(Reporting by Radhika Anilkumar in Bengaluru;)

((Radhika.Anilkumar@thomsonreuters.com;))