GUD Holdings' takeover bid has formally been rejected by the Breville Group, stating it was inadequate, unfair and unreasonable. The group has also been advising shareholders of Breville to strongly oppose the deal. The company feels that GUD is undervaluing it and can pay much more than what has been offered.

"The Breville board has carefully assessed GUD's offer and each director has decided to reject GUD's offer in relation to their own shares in Breville", Chairman John Schmoll said in a statement.

GUD's rejected offer stood between $2.20 and $2.25 per Breville share, for a 50.1% stake in the company, and between $2.57 and $2.66 for a 100% ownership. The view that the offer is too low is also shared by independent expert PwC Securities, stating that per Breville share price should be between $2.73 and $2.90 for a 50% control.

The takeover bid was put forward by GUD last month. Breville shares' last recorded trading price was $2.28.