Maytag has been making domestic appliances for nearly 100 years

Haier and two US private equity firms have bid $1.28bn (�700m) for the iconic American manufacturer which has struggled amid stiff competition.

US corporate buy-out firm Ripplewood bid $1.13bn for Maytag last May.

A bidding war could now take place as Maytag said it would consider both bids but favoured Ripplewood's.

Bid battle

Haier, one of China's largest conglomerates, has teamed up with Bain Capital and the Blackstone Group to make the offer.

It is one of China's best-known electrical manufacturers, accounting for a quarter of all refrigerator sales.

We believe it is incumbent on us to pursue this possibility of achieving a higher price for our stockholders Howard Clark, Maytag Check Maytag's share price

Maytag, which has been making washing machines and other products for nearly 100 years, is best known for its ownership of the iconic Hoover brand but it also produces a range of other household products.

It has suffered a fall in profits in recent years as rising steel prices and cheaper competition from abroad have squeezed margins.

Maytag's board initially recommended Ripplewood's offer - which is also being backed by the Goldman Sachs and J. Rothschild investment banks - but the terms of the deal allowed it to consider other bids.

"We continue to support the Ripplewood transaction," Maytag director Howard Clark said in a statement.

"However, we also believe that it is incumbent on us to pursue this possibility of achieving a higher price for our stockholders."