Shareholders have until 14th July to accept or reject the bid from Phoenix.

The board, led by temporary chairman David Adams after Roger Canham recently stepped down, said the 32.375p bid “significantly undervalues” the company.

Phoenix, which is chaired by Roger Canham, wrote to investors laying out the mandatory cash offer on Friday after a 20.9% purchase of shares from activist investor New Pistoia Income fund took its stake over 55%. That prompted the Takeover Panel to force Phoenix into a mandatory full cash bid.

Phoenix has maintained Hornby should remain listed on the junior stock market, construed as an admission that it does not want to buy the 45% of the company it does not already own. The bid was also at a nil-premium to the share price. The shares were down 1p as of Monday 26th June, or 3%, to 32.50p.

Hornby, led by chief executive Steve Cooke and advised by Numis, plans to write to shareholders laying out more details about its rejection.