Abano Healthcare's board has again rejected a takeover offer, despite it being supported by one of its director who is also the joint-venture partner in developing its audiology business.
Archer Capital and Peter Hutson were willing to pay $6.97-$7.14 per share for Abano, valuing the company at $134.6 million.
But managing director Alan Clarke said the company's dental operations alone are worth far more than that.
"As our road show has indicated, there is enormous value in the dental sector if we use another transaction, which was the sale of Dental Corporation to Bupa (Group), which would value our dental business alone at around $250 million," Mr Clarke said.
"So we believe that the value of Abano Group is considerably above that which has been indicated."
The board's rejection meant their only option was a formal takeover bid. To gain full control, the bidders would need 90% of shareholders to accept.
Mr Clarke said the board did not know whether an offer would be forthcoming.