Shares in challenger bank Shawbrook jumped almost 10 per cent this morning after it said "thanks, but no thanks" to an £825m offer from a group of private equity firms.
The lender's board had already said it was unlikely to accept the 330p per share offer by a private equity consortium including Pollen Street Capital and BC Partners.
However, today it added that although the transaction structure has changed since the initial offer, it will not recommend it.
"The offer price has not changed from the proposed terms that were previously rejected by the board of Shawbrook on 6 March. However, the board notes the change in transaction structure from a scheme of arrangement to a takeover offer with an acceptance condition of 50 per cent plus one share," it said.
"The board has concluded that it is not able to recommend the offer. The board therefore recommends that shareholders reject the offer."
Shares rose 9.7 per cent in mid-morning trading, to 334p.
Although Shawbrook was, like other lenders, hit by the result EU referendum, days after the vote shares fell further as it announced a £9m impairment charge for its second quarter.
However, earlier this month it reported pre-tax profits of £88.2m, up 26 per cent from the year before.
In July it said it was "not seeing any material change in activity".
"Indeed, some markets that slowed in the run-up to the referendum have picked up."