UPDATE 2-PPG raises offer for Finland's Tikkurila, tops Akzo bid

* PPG offers 34 euros per share

* Akzo offered 31.25 euros last week

* Shares up 3.6% (Adds analyst, updates shares)

Feb 4 (Reuters) - Finnish paints maker Tikkurila said on Thursday Pittsburgh-based PPG has raised its all-shares offer for the company to 34.00 euros per share, topping a rival bid from Akzo Nobel.

The two industry heavyweights are seeking to tap into Tikkurila’s strong position in Finland, Sweden, the Baltics, Russia and Poland.

“Today’s bid values Tikkurila ...well above both Akzo Nobel’s and PPG’s own multiples, highlighting the quality and importance of acquiring the asset,” Citi analysts said in a note.

Tikkurila’s board has unanimously decided to recommend that the shareholders accept the PPG’s raised offer, which values the firm at 1.5 billion euros ($1.8 billion).

Shares in Tikkurila were up 3.6% at 34.2 euros at 1031 GMT.

Tikkurila said some major shareholders, holding 29.3% of its shares, have agreed to accept the offer if PPG gets regulatory approvals for the acquisition.

PPG has lowered its acceptance rate for the offer to 66.7% of shares from its original 90% target.

The battle for Tikkurila started in December with PPG’s 25 euros per share offer, which it raised to 27.75 euros after rival Hempel approached Tikkurila.

Akzo Nobel last week made a binding offer of 31.25 euros per share, valuing Tikkurila at 1.4 billion euros. ($1 = 0.8339 euros) (Reporting by Tarmo Virki; editing by Jason Neely)