Perpetual Ltd witnessed a significant drop in its share price after the board turned down the latest acquisition proposal from EQT Group. The Sydney-headquartered investment firm stated that the so-called final and best offer does not serve the best interests of its shareholders.

In a Monday announcement, the company disclosed that the bid of A$22.50 (US$16.03) per share, along with a potential dividend of up to A$0.60, significantly undervalues Perpetual. This July proposal, valued at roughly A$2.8 billion for the entire firm, was deemed insufficient by the board.

During early Monday trading, Perpetual's stock plunged as much as 15%, marking its steepest single-day decline since November 2022. Citi analyst Thomas Strong commented in a research note: "The bidder's characterization of this as its final and best offer suggests that EQT will not return to the table for at least several months. Over the long term, we expect the shares to gravitate toward intrinsic value, which we estimate at A$18.40; however, the market will likely continue to factor in the possibility of alternative bidders."