UK testing specialist Intertek has rejected a £9.3 billion takeover proposal from Sweden's EQT, which offered £51.50 per share in cash. The FTSE 100 company stated that the bid fundamentally undervalues its business and future prospects. The rejection comes after EQT submitted a non-binding offer on April 10, which Intertek reviewed with its advisers before declining.

Intertek's board unanimously concluded that the proposal undervalued the company, which helps customers identify and mitigate risks in operations and supply chains. The rejection follows an 18 percent share price drop in early March due to muted forecasts for two key business lines. The company announced plans on Tuesday to explore separating its energy and infrastructure business through a sale or demerger as part of a strategic review.

EQT, which manages about €270bn in assets, has until May 14 to decide whether to make a formal offer under UK takeover regulations. The private equity firm's move represents the latest attempt by a buyout group to acquire a London-listed company, following recent deals including KKR's £4.7 billion acquisition of Spectris and Thoma Bravo's £4 billion purchase of Darktrace.