Gulfsands Petroleum has rejected a $585.2m takeover offer from Oil India and Indian Oil Corporation.
Oil India and Indian Oil Corp approached Gulfsands on 27 April with an indicative offer of 315 pence a share.
The offer is unchanged from an initial approach they made on 18 March and continues to be highly conditional and subject to due diligence, the company said in a statement.
Gulfsands rejected the proposal saying the offer is wholly inadequate and materially undervalues the company.
Gulfsands also said it welcomes the decision by the Panel on Takeovers and Mergers to set a deadline of 5pm on 11 May 2010 for the Indian suitors to make a substantial formal offer or give up the deal.