Beales, the department store, has rejected an offer from property firm Wenhedge to buy a 28% stake in the business.
Wenhedge has offered to buy 4.5 million shares at 36p a share, representing a premium of 36% above Beales' recent closing price of 26.5p. This would give Wenhedge a 28.23% stake in the business, allowing it to veto any special resolutions proposed by the board.
However Beales' directors said they did not intend to accept the offer in respect of their own shares, as it did not reflect the underlying value of the company.
Beales urged other shareholders to consider its interim results to May 3, where it reported a small increase in profit before tax despite a drop in sales, before deciding on the offer.
Earlier this year, Beales appointed former Bhs retail director Tony Brown as chief executive to help turn around performance at the company.
Wenhedge is a property company, wholly owned by Andrew Perloff.