Spanish tobacco firm Altadis has revealed it has "unanimously" decided to reject a bid from British company Imperial Tobacco.
Altadis said its board of directors had "considered and analysed" the "new unsolicited and non-negotiated approach" from Imperial - which offered €47 (£31.90) per share - but ultimately rejected the offer.
"In this respect, the board of directors of Altadis considers that Imperial's revised proposal…fails to reflect the strategic value of the company, the diversity of its unique assets, or its prospects for future growth, and has therefore unanimously decided to reject it," a statement from the firm said.
The offer from Imperial, the UK's largest tobacco manufacturer, was an improved proposal from the suggestion of €45 (£30.60) per share last month.
However the Madrid-based company, which had a turnover in 2006 of €1.7 billion (£1.15 billion), advised it would continue to consider its future options.
"The board of directors of Altadis has instructed its advisors to continue with the process already underway of analysing the best options for the company, its shareholders and its employees."
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz