A bid by Marlborough Lines for half of Horizon Energy has been rejected by Horizon's majority shareholder.
The Eastern Bay Energy Trust, which owns 77.3% of Horizon, rejected Marlborough's offer of $3.96 per share.
Trust chairman David Bulley says the trust undertook its own in-depth review last year, and has decided the offer is too low after taking its own independent advice.
Mr Bulley would not be drawn on whether a higher offer by Marlborough lines would tempt the trust to sell the necessary shares, saying future offers would be considered on a case by case basis.
Meanwhile, Marlborough Lines on Monday night reiterated its accusation that Horizon Energy has mislead the sharemarket in regards to its earnings.
Last week the company said it was considering making a complaint to the stock exchange about what it said was a surprise jump in Horizon Energy Distribution's forecast profits.