Donegal-born businessman Gerry Robinson said he would take the helm of Rentokil Initial and return up to 35 pence a share to investors if he sealed a takeover of the services conglomerate.
Raphoe Management, a company set up by Mr Robinson, said it had completed its initial assessment of the struggling pest-control and security-services firm and planned to put its suggestions to the board.
But Raphoe added its plans did not constitute a firm intention to make an offer, and some share dealers were not impressed. "They're not actually putting money on the table. Returning up to 35p to shareholders isn't exactly very exciting," said one.
Rentokil shares were down 0.6 per cent at 162-1/4 pence this afternoon, valuing the firm at £3 billion.
The shares leapt last month when Raphoe said it was considering a bid for Rentokil, although it signalled it would not be offering a conventional takeover premium.
Raphoe said today it would release Mr Robinson, a former chairman of media group Granada and spirits giant Allied Domecq, from a five-year contract to allow him to become full-time executive chairman of Rentokil for three-to-five years.
Mr Robinson owns 72 per cent of Raphoe. Raphoe said if the Rentokil board rejected its proposals, it might approach investors with a view to convening an extraordinary shareholder meeting to back its proposals.