The Commonwealth Managed Investments board has spurned a $2.3 billion takeover bid from Dexus Property Group (DXS) for the Commonwealth Property Office Fund (CPA).
In a statement to the Australian Securities Exchange, CMIL chairman Richard Haddock said the proposal from Dexus and Canada Pension Plan Investment Board "does not provide a compelling value proposition for CPA unitholders".
"Consequently, we have advised the consortium that CMIL will not grant access to the due diligence material, nor progress the DEXUS proposal at this time," Mr Haddock said.
"Should the consortium decide to submit a revised proposal with improved terms, it will be considered on its merits."
The consortium offered 68 cents in cash consideration and 0.4516 Dexus stapled securities for each CPA unit.
At a Dexus trading price of $1.04, the headline offer price was $1.15 per CPA unit.
CMIL said its board and advisers continue to evaluate the Commonwealth Bank of Australia's proposal to internalise CPA's management.