FitzWalter Capital has announced it does not intend to make an offer to acquire Auction Technology Group (ATG).

The private equity firm, which is ATG’s largest shareholder, had made 12 acquisition offers for the auction platform in the past few months, with its "final" offer comprising a cash consideration of £491m.

However, ATG stated that the offers "fundamentally undervalued" the firm and its future prospects, adding that it represented an "opportunistic attempt" at a time when its public market valuation is disconnected from the company’s fair value.

In its latest update, FitzWalter said that in light of ATG’s rejection and refusal to facilitate access to due diligence, it does not intend to make an offer for the company.

Under takeover rules, the private equity firm will not be able to make an offer for ATG for six months.

Following the announcement, shares in ATG fell by over 7%. In the last year, the firm’s share price has dropped by 52%.

---