Italy’s UBI Banca has rejected a sweetened takeover bid from competitor Intesa Sanpaolo, Reuters reported.

UBI rejected the offer as it ’failed to reflect the real value’ of the bank and adequately reward its shareholders.

To win over the core shareholders of UBI, last week Intesa said it would offer €0.57 in cash besides 1.7 new Intesa shares for each UBI share.

Intesa had earlier ruled out sweetening the bid.

However, later it said it would spend up to €652m ($756m) to provide a 40% premium on UBI’s closing price on the day the offer was announced, and this bid was up from the initial 24%.

The sweetened deal has reportedly made investors holding 20% of UBI to state that would tender their shares.

However, according to UBI, the cash aspect of the deal only partially offset a shortfall in the valuation of the firm, which touches around €1.1bn.

Earlier this month, UBI Banca’s board unanimously rejected the takeover bid citing that the bid is “inadequate” and added that it does not reflect its “fundamental value”.

Intesa first launched the €4.9bn takeover bid to acquire UBI Banca in February.

Last month, Intesa secured the green light from the European Central Bank (ECB) for the acquisition.

In the same month, Intesa revised its deal terms with local rival BPER Banca to clear antitrust hurdles for the UBI Banca acquisition. Intesa also secured the market regulator nod.

Recently, Italy’s insurance company Cattolica Assicurazioni agreed to tender all its UBI Banca shares to Intesa’s takeover bid.

The lender also secured the antitrust nod from Italian Competition Authority (AGCM).