Perpetual, which is one of the biggest wealth managers in Australia has defended a decision to reject $1.75 billion takeover bid. The firm said that it has managed to reap in good profits and is on track; that leaves no reason why it should be acquired by someone else.

During its AGM, the firm revealed that it is making a profit of $40 million in the final half of last year. It is now on track and that gives it the right to fend off a takeover offer by US PE firm, Kohlberg Kravis Roberts (KKR).

Besides this, the offer itself is too low, said Perpetual's chairman-elect, David Scott. He further added that the decision is being taken after consultation with advisers and that the price does not reflect the true value.

"Nevertheless, the board believes the shareholders' interests are best served by conducting exploratory discussions with KKR in order to assess their indicative proposal," he said during the meeting.

However, the ongoing Chairman, Robert Savage said that it is the decision to be taken by his replacement. But he has told him what he would have done.