Italian industrial property group Spazio Investment today rejected the €124m offer from its largest shareholder, Laxey Partners.

The AIM-listed company, in which activist investor Laxey has built up a 23.8% stake, said the proposed €4.50-a-share cash offer 'significantly undervalues' it.

It also said the offer did not include any premium for control and that its own ‘accelerated business plan’ was expected to deliver ‘significant’ returns over the medium term.

Spazio is externally managed by Pirelli RE and chaired by former Gazeley chairman John Duggan.

The rejection of Laxey’s bid has been made by a committee of independent directors, comprising Duggan, Roy Dantzic and Richard Mully.

The committee said the offer represented a discount of 67% to its 31 December 2009 net asset value of €13.60 a share and a premium of just 13.2% to the closing share price of €3.98 on 5 June, the day before Spazio announced it had received a firm intention to make an offer from Laxey’s Terra European Investments vehicle.

It also said Laxey had endorsed its ‘accelerated business plan’, which involves the sale of €450m of assets and the return of excess capital to shareholders.

At the end of 2008 Spazio’s portfolio was valued at €730.6m.