Timber products company Auspine Ltd rejected Gunns Ltdâ€™s offer of $6.15 (US$5.32)per share on Thursday, which valued the company at $332 million (US$287 million).
Auspine said that after an expertâ€™s evaluation, it considered the bid â€œnot fair.â€
Gunns announced it had entered into an agreement with a small number of Auspine Shareholders on May 15 to acquire approximately 25 percent of the issued shares in Auspine.
Auspine said the Gunns offer considerably undervalued the net assets and strategic benefits available to Gunns once it acquired the company.
Adrian de Bruin, the Auspineâ€™s largest shareholder rejected the offer referring to the bid as opportunistic, with adverse tax implications for Auspine shareholders.
The companyâ€™s board and de Bruin said that as a result of the sale of a 25 percent minority interest in the Company to Gunns, they consider that Auspine is now â€œin playâ€ and is likely to be acquired either by Gunns for an increased consideration or another party for an increased consideration.
They invited Gunns to make another offer.