Intertek has rejected an £7.9bn buyout proposal from Swedish private equity firm, EQT, stating the offer "fundamentally undervalues" the firm and its future prospects.

The proposal was made on 10 April and comprised an offer of £51.50 per share in cash, which represents a 36.6% premium on the FTSE 100 product testing and certification company’s closing share price on 9 April.

Intertek said that it carefully reviewed EQT’s offer with its advisers and unanimously and unequivocally rejected the proposal on 13 April.

In accordance with takeover rules, EQT is required, by not later than 14 May, to either announce a firm intention to make an offer for Intertek or announce that it does not need to make an offer.

Following the announcement, shares in Intertek increased by 14% yesterday, with a further 5% increase in early trading today.

The update came after the FTSE 100 announced a strategic review to evaluate a potential separation of its energy and infrastructure division.

Intertek said it will provide a further announcement if and when appropriate.

---