Financial services giant Hargreaves Lansdown has rejected a £5 billion private equity takeover offer.

The Bristol-based firm says the bid from a consortium including CVC, Nordic Capital and Platinum Ivy – the latter of which is owned by Abu Dhabi’s sovereign wealth fund – “substantially undervalues” its DIY investment platform.

Made last month, it was the second approach from the consortium and priced shares in Hargreaves Lansdown at 985p, a 30% premium on its then share price of 755p.

Since then its share price has risen substantially, sitting at 979p this morning following a 5% spike yesterday amid rumours of a potential sale.

“The board confirms that it unanimously rejected the proposal on the basis it substantially undervalues Hargreaves Lansdown and its future prospects,” read a notice to the London Stock Exchange.

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Founded in 1981 by billionaire Peter Hargreaves and Stephen Lansdown, Hargreaves Lansdown is the UK’s biggest stockbroker. It claims to execute 34% of trades in UK companies and 56% of overseas trades.

With 1.8 customers, it now oversees £150bn in customer assets and saw total revenue jump to £199.7m in the first three months of the year, up from £188.1m.

It looks set to return to the FTSE 100 index at the next London Stock Exchange rebalancing.

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