Investing.com-- Australia's Insignia Financial has rejected a A$2.67 billion ($1.69 billion) takeover bid from Bain Capital, saying the offer does not provide fair value to its shareholders.
Last week Bain made a preliminary, non-binding bid to acquire the Australian wealth manager for A$4.00 cash per share, but Insignia rejected the offer on Wednesday citing valuation concerns.
The offer price represented a 17.6% premium to the stock's closing price at the time when the offer was made.
Shares of Insignia fell as much as 3% to A$3.50. The stock had hit a two-year high last week after Bain's offer.
"The Proposed Transaction (JO:TCPJ) does not adequately represent fair value for IFL shareholders in the context of a change of control transaction and that it is not in the best interests of IFL shareholders to engage with Bain Capital in relation to the Indicative Proposal," Insignia said in a statement.
Founded in 1846, Insignia Financial provides financial advice, superannuation, wrap platforms, and asset management services to financial advisers and corporate employers.