The board of FirstGroup PLC (LSE:FGP) has unanimously rejected the takeover offer from US private equity group I Squared Capital.
In May, the US firm proposed an offer of up to 163.6p, comprised of 118p per share cash with another 45.6p per share contingent on how much was made from the sale of its American business, including Greyhound.
Directors said in a statement today that they concluded that the cash component “significantly undervalues” FirstGroup's continuing operations and future prospects, while the contingent amount “does not provide shareholders with sufficient certainty”.
Earlier this month, major shareholder Schroders, which holds nearly 18% of the company, called the offer "unattractive".
Shares in FirstGroup have risen by a third since the start of the year to 137.54p.