July 10 (Reuters) - British homebuilder Crest Nicholson said on Wednesday it is minded to recommend to its shareholders a sweetened 701.4 million pound ($897.3 million) all-share takeover deal from its bigger rival Bellway if it comes up with a firm offer.

Under the terms of the latest proposal, Crest Nicholson's shareholders will get 0.099 Bellway shares for each Crest share they own and a dividend of 4 pence per share.

The proposal made on July 3 implies a value of 273-pence-per share and is Bellway's third over the last four months. Its last proposal was worth 253 pence. ($1 = 0.7817 pounds) (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Savio D'Souza)