Elliott, which successfully forced change at Alliance Trust this year, has bought 67,950,000 shares using a contract for difference, paying close to Lone Star’s offer of 131p per share.
A spokesperson said: “Elliott believes that the offer substantially undervalues the company and confirms that it did not accept the offer.”
The move came just as Lone Star extended its offer yesterday for a further week to 30 September after gaining approval from 71.7 per cent of shareholders. The US private equity giant needs to reach 75 per cent for the offer to become unconditonal.
However Elliott’s last-minute approach could scupper Lone Star’s bid or force it to up its offer unless it wins support from remaining shareholders.