The independent board of the UK/French IP-GDF Suez has rejected a bid from France’s GDF Suez for full ownership of the company.

GDF Suez made an offer of £3.90 ($6.20) cash per IP-GDF Suez share in March. The board rejected the offer saying it undervalues the company.

The firm must now wait until 3 August before making a fresh offer. The US’ Morgan Stanley, the UK’s Barclays and Japan’s Nomura are advising IP-GDF Suez.

The French utility already owns 70 per cent of IP-GDF Suez following a merger with UK-based International Power (IP) in 2011 (MEED 7:2:11).

IP’s shareholders approved the deal in December 2010. More than 99 per cent of the votes were cast in favour of the transaction.