A significant shareholder in Anglo-Dutch recycling firm Renewi PLC (LSE:RWI) has advised the company's board to refrain from discussions with Australian suitor Macquarie until it increases its £636 million bid, according to the Sunday Times.
Last month, Renewi rejected Macquarie's 775p-per-share offer, stating it "fundamentally undervalues" the company.
While the unnamed top-ten shareholder insists that the offer does not reflect Renewi's true value, another believes the board should commence talks with Macquarie, the paper said.
Renewi, which recently has reportedly appointed Goldman Sachs (NYSE:GS) and Greenhill as financial advisers, has seen its share price surge by 50% to 723p since Macquarie's offer became public.
Analysts have set a target price of at least 900p for a potential takeover. Macquarie, which owns assets in the same sector, has until 26 October to formalise its bid.