Construction firm Galliford Try has rejected an offer from rival Bovis to buy its home building business.
Bovis had offered Galliford shareholders £950m in shares for its Linden Homes and Partnerships & Regeneration businesses.
Galliford said the offer was too cheap and that it remained confident in its long-term prospects after rejecting the bid.
Bovis said the two companies were no longer in discussions.
Before Bovis’s offer Galliford’s market value was about £598m. Bovis itself had a market value of about £1.34bn.
Bovis said one concern for Galliford was the viability of the remaining business.
Buying the Linden Homes and Partnerships & Regeneration businesses would leave Galliford with its construction business, which includes building projects from airports and harbours to prisons and office space.
“Galliford Try did not believe that the proposal fully reflected the value of the Housing Businesses and the need to ensure that the remaining Galliford Try UK listed construction focused group had a viable capital structure,” Bovis said in a statement.
Galliford shares rose 8% in early trading.