Comvita's share price has shed 3% after Cerebos threatened to withdraw a takeover bid for the honey products maker and set up in competition.
The Singapore compabny's offer of $2.50 per share was denounced in a valuation report on Tuesday that estimates Comvita is worth between $3.40 - $4 per share.
Comvita's share price fell 8 cents to $2.87 on Tuesday.
Cerebos chief executive George Crocker is playing hardball, saying the company will not lift its bid anywhere near the bottom end of the valuation range.
Comvita is equally adamant the honey products maker is worth well over $4 per share and chairman Neil Craig says he would be happy if Cerebos walks away.
Mr Craig says that at its current share price a growing company like Comvita is really cheap.
"I'd be quite happy if they walked away. We've never been for sale and it is pretty clear that they are not serious about paying for the value that we believe is there," he said.