Irish energy distributor DCC has today rejected a £4.95 billion takeover proposal from a consortium comprising US investment firms KKR and Energy Capital Partners, saying it undervalued the company.
London-listed DCC's shares fell about 5% in early trade.
The cash proposal of 5,800 pence per share represented a premium of 8% to DCC's closing price before the offer was made public yesterday.
KKR and Energy Capital Partners did not immediately respond to requests for comment. Under British takeover rules, the consortium has until June 10 to make a firm offer or walk away.
The approach to Dublin-based DCC marks the latest private equity pursuit of a UK-listed company, with bidders attracted by British and Irish firms' comparatively lower valuations.
DCC, which distributes liquid gas, biofuels, and renewable energy to businesses and households, has been simplifying its operations to focus on its core energy business, after divesting non-core healthcare and technology assets.
"We think there is a good chance that a deal happens, but are not convinced it will be much more than 10% ahead of the current price," RBC Capital Markets analysts said in a note.
DCC shares were down 5.4% at 5,565 pence this moring, valuing the company at £4.75 billion.
