Hargreaves Lansdown (HL) has rejected a takeover bid from a consortium of private equity firms, valued at £4.67bn.

The financial services firm stated that it was approached by a consortium, comprising CVC Advisers, Nordic Capital and Platinum Ivy, which is a subsidiary of Abu Dhabi Investment Authority, to acquire the group at 985 pence per share.

However, HL said that its board had unanimously rejected the proposal on the basis that it “substantially undervalues” the firm and its future prospects.

The firm said it is focused on executing its strategy.

Following the announcement, shares in HL jumped by more than 15%, according to the FT, with its share price increasing by 60% in the year to date.

In line with takeover rules, the consortium must announce a firm intention to make an offer for HL or state that it does not in the next 28 days.

In the meantime, HL said that shareholders have been advised to take no action.

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