Entrepreneur Robert Tchenguiz has been rebuffed again by pub operator Mitchells & Butlers (M&B).
Tchenguiz last night submitted a formal bid for the operator of the All Bar One and Harvester chains, valuing it at more than £4b, or 550p a share.
The property tycoon had previously been given until 8 May to pay up or shut up, following an informal offer, also rejected, last month.
But M&B has again spurned the approach, saying it "undervalued" the business.
A statement said: "The proposal fundamentally fails to recognise the value and prospects of the company."
It highlighted the business's growing success in the food market, serving 80 million meals in the last year; a 4.1% increase in like-for-like sales in the first 29 weeks of this year; and a strong portfolio of freehold assets.
The pub and restaurant operator also countered Tchenguiz's proposal to merge the M&B estate with its Laurel Pub Company, saying: "The board believes the company has excellent prospects for organic growth and is well placed to take advantage of further consolidation opportunities."
M&B has publicly declared an interest in buying up some of Whitbread's pubs.
Tchenguiz's offer, made through investment consortium R20, claimed it represented a premium of 38.3% to M&B's average closing share price of 397.7p in the calendar month prior to the announcement of interest on 13 March.
By Jessica Gunn
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