Shares of Gold Road Resources Ltd (ASX:GOR) surged 8.16% during Tuesday's trading session following the company's announcement that it had rejected a AU$2.1 billion takeover offer from Gold Fields. The Australian gold miner's decision to rebuff the proposal has sparked investor interest, driving up its stock price significantly.

According to a filing with the Australian Securities Exchange, Gold Fields, which is listed on the New York Stock Exchange, offered to acquire Gold Road Resources for AU$2.27 per share. However, the board of Gold Road Resources determined that the terms of the proposal materially undervalued the company and were not in the best interests of its shareholders.

In an interesting twist, Gold Road Resources revealed that it had proposed to buy Gold Fields' interest in their Gruyere joint venture in Western Australia, which Gold Fields declined. The joint venture agreement also restricts Gold Fields from acquiring more than 10% of Gold Road's shares, potentially limiting its ability to pursue a hostile takeover.

The market's positive reaction to Gold Road Resources' rejection of the takeover bid suggests that investors believe the company may be worth more than the offered price or that it could attract higher bids in the future. Gold Road Resources has advised its shareholders to take no action in response to the offer, indicating confidence in its standalone value and growth prospects.