(Recasts, changes dateline, adds analyst's comments, updates share movement)

By Biswarup Gooptu

BANGALORE, June 23 (Reuters) - French aero engine and telecom equipment maker Safran (SAF.PA: Quote, Profile, Research) made an unsolicited bid for the secure ID business of Digimarc Corp (DMRC.O: Quote, Profile, Research) for $300 million in cash, topping an offer made by L-1 Identity Solutions Inc (ID.N: Quote, Profile, Research) in March.

In a statement issued by Digimarc, the company said its board has determined that Safran's proposal "could reasonably be expected to lead to a superior proposal."

Under the deal with L-1, Digimarc cannot enter into a different transaction unless its board declares a competing proposal a "superior proposal" and provides L-1 with a negotiation right for five business days.

L-1 had agreed to acquire Digimarc's secure ID business for about $250 million in a cash and stock deal, which also cleared a key anti-trust hurdle Monday.

In a note to clients, Lazard Capital Markets analyst Nick Andrewes raised his price target on the Digimarc stock by $2 to $15 and said he viewed Safran's bid as "superior."

"We estimate that L-1's bid is currently worth roughly $263 million, $37 million less than Safran's bid. Given that about half of L-1's bid is in stock, there is some downside risk to the bid's value," he said.

Stanford Group Co analyst Jeremy Grant said that the timing of Safran offer was "surprising," but a bidding war would be good for Digimarc's shareholders.