The bingo and casino operator Rank urged investors to reject a takeover bid from the investment group Guoco, which it said "substantially undervalued" the business and its prospects.
Rank cited its plans to double its G Casino brand to 30 sites by 2015. Rank, which runs Mecca and Grosvenor casinos, also said that it expects to receive at least £275m in VAT refunds over the next two to three years from the Government. Guoco has made a 150p approach for Rank, valuing the firm at £586m. Rank shares yesterday closed up 1.2p at 148.7p.