Convenience retail group ADM Londis rejected a €35 million approach from rival BWG, which operates the Spar and Mace franchises.

Londis turned down the offer after just one board meeting, with a spokesman saying it was not on the market.

In a letter to the retail members of ADM Londis, chairman Mr Leo McCauley said: "The board's decision was taken on the basis that the offer is not strategically or financially in the best interests of our retail members or the company."

A spokesman said the board had unanimously rejected the BWG offer following careful consideration.

BWG, which has remained silent since news of the bid broke on Tuesday, refused to comment yesterday on the decision by Londis to turn down its offer.

Mr McCauley said Londis was now determined to look forward. "The board and management of ADM Londis are now in a position to focus on the positive growth of the business following a year of tremendous change and speculation."

Londis has reported a 14 per cent increase in group sales to more than €500 million in 2003 although full figures have not yet been released.

The company, which is the only Irish symbol group owned by members, opened 30 stores last year, bringing the total under its brand to 300. Of those, 100 are run by owner members with the remainders run by franchisees.

Londis, which employs 4,500 people and now claims to command 7 per cent of the convenience retail sector in Ireland, plans to open a further 30 stores in 2004 and will spend €1 million on a rebranding campaign.

BWG, which has 400 stores, has been in a period of reconstruction since management bought it out from Pernod Ricard's ownership in a €220 million deal.

It has offloaded a number of businesses, especially in the UK, in an effort to pay down debt but has stressed that it was open to acquisition opportunities if the right ones arose.

Sources in Londis said last night that its board had sent a clear notice that there was no "for sale" sign in its window.

• Musgrave Group wishes to state that it at no time made an approach to ADM Londis in 2002 as was reported in yesterday's Irish Times.