FirstGroup PLC (LSE:FGP) shareholders have rebelled over a proposed £1.2bn takeover bid from a US private equity firm.
I Squared's bid, which values transport giant FirstGroup at up to 163.6p per share, includes 45.6p that is contingent upon the amount the bus and train group receives from the sale of its American businesses, including Greyhound.
Reports indicate key shareholders would prefer to receive cash in full regardless of future proceeds from asset sales.
FirstGroup's biggest shareholder, Schroders, which holds nearly 18% of the company, called I Squared Capital's offer "unattractive", and said it failed to reflect FirstGroup's weight in the UK's railway sector.
Other shareholders include Threadneedle with 15% stake, Aberforth Partners with 9% stake, and BlackRock institutional trust, which owns just under 6%.
After selling its Greyhound bus service in the US for £125mln late last year, FirstGroup operates Avanti West Coast, Great Western Railway, and South Western Railway.
Ahead of the release of its full-year results on June 14, FirstGroup's board is under pressure to make clear its position on the offer.
FirstGroup's shares are currently trading at 137p, well below the range of I Squared's bid, suggesting that investors do not anticipate it will go through at that price.