Crest Nicholson (CRST) confirmed on Friday that it has rejected a second, unsolicited takeover approach from Bellway (BWY) which valued the group at about £650m.
Under the terms of the latest offer, received on 7 May, Crest shareholders would receive 0.093 new ordinary shares in Bellway for each of their shares.
This represents an implied value of 253p per Crest Nicholson share, which is a premium of about 18.8% to the closing share price on Thursday.
"The board of Crest Nicholson evaluated the revised proposal with its financial advisers and concluded that it significantly undervalued Crest Nicholson and its future standalone prospects and was not in the best interests of Crest Nicholson's shareholders," it said.
"The board therefore unanimously rejected the revised proposal on 14 May 2024."
Crest Nicholson said Bellway made an initial approach on 25 April, which would have seen shareholders receive 0.089 new ordinary shares.
News of the takeover proposals came just hours after Crest Nicholson slashed its interim dividend payment after swinging to a loss in the first half, and downgraded its profit guidance for the full year.
The housebuilder cut its adjusted pre-tax profit guidance for the year to the end of October 2024 to between £22m and £29m, from earlier guidance of £45m to £50m, and £41.4m last year.