US medical diagnostics firm Alere is pursuing a deal with smaller British rival Axis-Shield after its indicative £230 million offer for the company was rebuffed.

Alere said it had offered 460 pence a share in cash for the medical testing firm, representing a 37 per cent premium to the closing of the stock yesterday.

It said the board of Axis-Shield rejected the proposal and declined to enter into further discussions with Alere.

"Alere is keen to work towards a recommended takeover offer for Axis-Shield and would welcome the opportunity to discuss a possible transaction with Axis-Shield in a constructive manner," the US company said in a statement, adding it hoped making the offer public would trigger talks with Axis-Shield and its shareholders.

Reuters