Electricals chain Currys has confirmed it rejected a higher £757 million takeover approach from the US owner of Waterstones.
Currys said activist investor Elliott Advisors returned with a second proposed offer worth 67p a share, up from its initial 62p a share approach on February 19, which was rejected by Currys as being too low.
The retailer said its board had also rebuffed the second proposal, claiming it “significantly undervalued the company and its future prospects”.
Elliott has until March 16 at 5pm to make a firm offer for Currys or walk away under City Takeover Panel rules.
Currys share fell nearly 1% on Tuesday after it confirmed reports that it has rejected an upped proposal.
The group saw its stock surge last week as investors cheered the prospects of a bidding war for Currys after drawing attention from two potential buyers.
As well as the unsolicited advances from Elliott, Currys is also being eyed up by Chinese retail giant JD.com over a possible deal to buy the business.
JD.com said it was “in the very preliminary stages” of evaluating a deal which could include an offer for the entire share capital of Currys.
JD.com claims to be China’s biggest online retailer, with a marketplace-style shop that sells everything from electronics and furniture to food and household essentials.
Elliott took control of bookseller Waterstones in 2018, buying a majority stake from Russian billionaire Alexander Mamut who rescued the chain from near-collapse in 2011.
The bid interest comes amid an overhaul at Currys to focus on its core UK and Ireland business, with bosses striking a deal last year to sell its Greek and Cypriot arm for 200 million euros (£171 million) and taking action to turn around its loss-making Nordics division.
The retailer said sales were slow over the crucial Christmas period because some customers were still holding back on making more expensive purchases as the cost-of-living crisis bites.
But it said it was expecting to make an adjusted pre-tax profit of up to £115 million this year, higher than previous expectations, after making cost savings across the group.