Adds EQT's response in paragraph 3-4, analyst and company comments, updates shares, context throughout, adds graphics

By Nithyashree R B and Yamini Kalia

May 8 (Reuters) - Britain's Intertek ITRK.L on Friday rejected a third sweetened 8.93 billion pound ($12.12 billion) takeover proposal from Swedish private equity firm EQT AB < EQTAB.ST>, saying it was focusing on a review which could see the company split in two.

The product testing firm said the bid undervalued the company, and carried high execution risk. It also said that it had already received an "encouraging level of interest" for its energy and infrastructure unit from undisclosed potential buyers.

In response, EQT underscored the merits of its proposal and said it was disappointed by the Intertek board's "lack of engagement" without elaborating on its next steps.

EQT offered 58 pounds per share in cash for all of Intertek under its latest bid, and said that with an about potential 1.1-pound-per-share final dividend included, the 59.1 pound apiece bid would have delivered value.

"EQT believes the Further Increased Proposal delivers certain and accelerated cash value for shareholders, superior to the range of outcomes associated with Intertek's standalone prospects," the firm said.

The offer, including the dividend, would have represented a 35% premium to Intertek's closing price on April 15, the day before EQT made its first approach public.

GAP BETWEEN SHARE PRICE AND BID

Shares in the FTSE 100 company fell nearly 8% to 46.5 pounds on Friday but have recovered to trade down 2.6% at 49.15 pounds by 1332 GMT.

The stock has gained nearly 40% in the past month, but is still trading below its October 2020 peak of roughly 65 pounds.

Panmure Liberum analyst Joe Brent said he was surprised by the discount at which the company was trading compared with the latest offer.

"A further bid from EQT or others is possible," Brent said, adding that in the case of Intertek's breakup, its price could be 44 pounds or less.

Intertek announced its review a day after EQT made its private approach, which many analysts viewed as a defensive move.

TAKEOVER PROSPECTS

PineStone Asset Management, Intertek's fourth-largest shareholder according to LSEG data, alongside other top investors, is urging the company to engage with EQT, Bloomberg News reported on Friday. The investors did not respond to Reuters requests for comment.

"We think any improved offer would need to be 5%-10% higher than the latest rejected approach to get board approval," Jefferies analysts said.

A successful EQT bid would make it Britain's second‑largest private equity takeover, trailing only KKR's KKR.N 11.1-billion-pound acquisition of Boots in 2007, according to M&A data and intelligence platform Mergermarket.

The firm has until May 14 to make a formal offer or walk away.

($1 = 0.7368 pounds)