(Reuters) –Pendal Group Ltd stated Tuesday that the non-binding offer of Perpetual Ltd for A$2.40 billion ($1.78 Billion) to acquire the Australian asset manager Perpetual Ltd was “significantly undervalued”.

Pendal is a former unit. Westpac Banking (NYSE:) Corp. The stock was initially disclosed April 4, and it was trading at a 39.2% premium against the closing price of April 1.

Pendal stated that it had evaluated Perpetual’s cash-and stock proposal and determined that this offer was not in its best interest.

Perpetual has not yet responded to a Reuters inquiry for comment.

($1 = A$1.35)