Shares in Monitise jumped more than five per cent on Monday after US fintech firm Fiserv upped its bid for the UK-listed company.
A revised offer of 3.1 pence per share in a deal now worth £75m has been given the thumbs up by Monitise mangement. An earlier offer of 2.9 pence per share was made in June.
The fresh offer is a 34.8 per cent premium on Monitise's share price prior to the original offer which shareholders had opposed.
The struggling company has issued a string of profit warnings since its heydey in 2014 when it was valued at more than £1bn. In 2015 it put itself up for sale but failed to find a buyer.
Peter Mumford, fund manager at Cavendish Asset Management, one of Monitise's biggest shareholders said the latest offer "was pretty disappointing" adding that it was "a steal "for Fiserv. "I don't think it reflects the full value of the company".
"It's very disappointing that the company has not been able to achieve a higher offer. They [management] feel for one reason or another, they want to be part of a bigger operation," he told City A.M..
"Fiserv should be able to make a lot of money from Montitse," based on its proven technology and ties with Santander and IBM said Mumford, but "it's worth more than its current value" he said. "It's us poor shareholders who are the ones who will lose out, which is a great shame".
He added that an offer from a new bidder was "extremely unlikely" in his view and the offer is likely to be accepted by shareholders this time. Mumford said he would take a decision closer to the time of the vote on whether to vote in favour of the new offer or not.
Monitise shares closed up 5.11 per cent on Monday at 2.98 pence per share.