Envestra Ltd has rejected an unsolicited proposal by APA Group Ltd for all of the issued capital it does not own, saying the bid did not acknowledge the full value of the company.
Last month Envestra formed an independent board to assess APA's all-scrip proposal for a scheme of arrangement.
The board also appointed financial, legal and tax advisers to aid in the assessment.
The board concluded the offer "significantly undervalues" Envestra shares in the context of the proposed control transaction.
It also noted the proposal "was not in the best interest of shareholders".