Britain's Balfour Beatty has rejected a £1bn offer from John Laing Infrastructure Fund for its investment unit.
Balfour said the offer fell significantly short of its own valuation of its public-private partnership asset portfolio.
JLIF only confirmed at the beginning of the month that it would finance the offer by launching a rights issue.
Balfour Beatty has a market capitalisation of £1.26bn, while JLIF's stands at around £1bn.
The firm has fought off an all-share takeover bid from Carillion, which was worth around £2bn.
Its shares also plunged by over 20% in September after the group said that profits would be roughly £75m lower than expected in its construction services division.
In light of this, Balfour appointed auditing firm KPMG "to undertake a detailed independent review of the contract portfolio within Construction Services UK".
Balfour Beatty shares remain stable around the 186.50p mark despite the news of a rejected offer.