Speciality milk producer A2 Milk has knocked back a potential takeover offer.
The company's largest shareholder, Australia's Freedom Foods and the American Deans Foods, expressed their interest in buying A2 Milk last month, prompting a surge in its share price.
But A2's stock fell 7 percent this morning after the company's board signalled the offer was less than compelling, and it would not be recommending it to shareholders.
However, it left the door open, saying it had told Freedom and Dean Foods that it was willing to talk further about a possible bid.
A2 said it also received potential interest from other parties and it was evaluating those proposals.
The company stressed that no takeover offer was imminent.
Separately, A2 was forecasting stronger revenue due to rising infant formula and fresh milk sales.
It expected revenue would rise 39 percent, to $154 million in the June 2015 year, rising to $267 million the year after.
But gross earnings would remain flat at $4 million, as A2 continues to expand, though that triples to $12 million in the June 2016 year.