Plasterboard maker BPB today rejected a £3.6bn hostile bid from French building materials firm Saint-Gobain.
BPB has 14 days to post a full response, setting out its reasons for rejecting the offer.
Saint-Gobain's formal launch of its 720p a share offer confirmed an indicative proposal made on August 3, which improved upon an earlier offer of 675p a share. Since then, BPB's share price has risen to 730p indicating shareholders are holding out for a higher offer.
BPB said in a statement: 'The board of BPB has no hesitation in reiterating its advice to shareholders to reject this unwelcome offer of 720p per share which substantially undervalues BPB.'
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