AIM-listed Bulgarian Property Developments has firmly rejected the second takeover bid by tycoon Joe Lewis.

The 16p-a-share offer by Windsorville Investments, his special purpose investment vehicle, was this afternoon rebuffed by Bulgarian Property Developments on the grounds that it ‘significantly undervalues the company’.

It said in a Stock Exchange announcement that ‘the board strongly recommends that shareholders take no action’.

It added: ‘The company's property valuers, Colliers CRE, are in the process of finalising a valuation of the company's portfolio as at 31 December 2008 and it is expected that the valuation will be published in the near future.

‘The board anticipates that the valuation will clearly demonstrate the inadequacy of Windsorville's offer. Moreover, the company continues to hold cash balances substantially in excess of its bank debt. Accordingly, the board strongly recommends that shareholders take no action in respect of their shareholdings in BPD.’

Windsorville had increased its shareholding in the company yesterday to 35.6% and subsequently made its mandatory cash offer, valuing the company at £17.3m.

A year ago Windsorville offered to buy the company for 64p a share, after acquiring a 24.4% stake in September 2007, but was rebuffed by the company’s board, which said the offer ‘materially undervalues the company’.

Windsorville bought 10.65m shares at 16p each to give it a further 9.8% of the company.

Bulgarian Property Developments’ net asset value at 30 June last year was 63.7p a share.

The value of the portfolio was €86m (£77m).