FitzWalter Capital has publicly criticised Auction Technology Group (ATG) after the technology firm rejected a number of acquisition offers.

ATG announced last week that it had received and rejected 11 "unsolicited" takeover proposals from its largest shareholder.

The most recent proposal was priced at £3.60 per share, but the technology firm stated that the offer undervalued the firm and its prospects.

However, FitzWalter has responded to ATG’s statement which said it remains confident in its standalone prospects to deliver long-term shareholder value, stating that its share price has declined by 51% over the last year.

FitzWalter also responded to the technology firm’s statement that it has constructively worked with the investment company, and its repeated approaches have "placed unnecessary constraints and restrictions" on ATG.

It stated that ATG’s board had informed FitzWalter that its preferred alternative to an acquisition offer was the disposal of its I&C division to fund the re-investment of sale proceeds into subsequent acquisitions.

However, the investment firm said it became clear that ATG had not run a formal sales process for I&C in order to maximise shareholder value, and basic work with respect to identification of the key management to run the I&C business had barely commenced.

Partner at FitzWalter, Andrew Gray, said that ATG's board has not experienced the "pain" that shareholders have experienced through the value destruction that has been presided over by the technology firm's directors.

He added: "It is perhaps unsurprising that the board's conviction in ATG's prospects as standalone company under its governance; its credibility in acquisitions and divestitures; and its own view of fundamental value, is so totally and completely detached and divorced from their track record, as evidenced by the share price performance."

Head of markets at AJ Bell, Dan Coatsworth, stated that the investment firm has gone "hostile" by taking the "the nuclear option of bad-mouthing the group in public to try and get more shareholders on its side".

He concluded: "The bidder has shamed ATG over destroying shareholder value since being a listed company and criticised its desire to sell a division and recycle any proceeds into more acquisitions. FitzWalter argues that the negative market reaction to an acquisition last summer was bad enough, let alone giving ATG the means to do more deals.

"These remarks mean FitzWalter has now burned any bridges between the two companies. It now turns to ATG to see whether it pulls up the drawbridge after being named and shamed in public, or whether it seeks the views of other shareholders over its destiny.

"The fact that FitzWalter was prepared to make 11 bids shows it is determined to own the company. Going hostile is a high-risk strategy as it can easily backfire. The market reaction to the news is non-plussed, suggesting that it’s just a playground spat and that it doesn’t increase the likelihood of a higher offer from the bidder, or ATG lowering its guard."

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