The shareholders of German energy group Uniper have rejected Fortum's offer to buy the company for 8.05 billion euros.
According to Uniper's board, Fortum’s offer of 22 euros per share undervalues the company, whose shares currently trade between 23-24 euros.
Klaus Schäfer, Uniper's CEO, also said Fortum would not bring any added value to the company’s staff or shareholders.
While Fortum focuses mainly on carbon-free power generation in the Nordic countries and Russia, Uniper is predominantly involved in conventional energy sources and global commodities business.
As reported by Reuters, Fortum's chief executive Pekka Lundmark said the company does not see any reason to raise the offer price.
"Fortum's bid offers Uniper's shareholders a 36 percent premium over the company's share price in May, before speculation of the takeover began," Lundmark added.
Uniper's largest shareholder, German utility E.ON, agreed to sell its 47 percent stake to Fortum in September. Were E.ON to call off its offer, Fortum would be entitled to a compensation fee of up to 1.5 billion euros.
Uniper said it would continue negotiations with Fortum.