A take-over offer for Silvermines, the engineering and technology group, has been rejected by the company's board "as undervaluing the group" but the news resulted in a surge in the share price yesterday. Silvermines, which made a loss of £730,000 (1.1 million euros) in 1998, received a formal offer, believed to amount to 46p sterling (55p) per share, but "discussions have been terminated," according to the company's statement.

The share price rose yesterday on the news of the take-over bid. It was 22 per cent higher at 58 cents (46p) in Dublin, and 25 per cent higher at 37.5p sterling (45p) in London. Chairman, Mr Bob Morton refused to comment on claim that it was management buy-out offer which had been rejected.