An independent committee set-up to examine a majority shareholder takeover bid for Essar Energy said the offer should be rejected.
The committee, appointed by the London-listed company in February, said the offer materially undervalues the company.
Essar Group Fund Ltd sits as the majority party, owning 77% of the resources firm. It offered up 70 pence per share for the remaining company stake.
A group of minority investors headed by the Association of British Insurers (ABI) hired US law firm Skadden Arps to curb the deal.
Robert Hingley, director of investment affairs, said: “We call upon the majority shareholders to undertake only to apply for a delisting if more than half of outstanding shares are assented to the offer.”
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