The Rank Group, the parent company of Mecca Bingo and Grosvenor Casinos has sent a letter to shareholders with the reasons to reject Guoco Group’s 150 pence a share offer for the company.

When the offer was made earlier this month as the Guocco Group increased its shareholding, Rank stated that the offer of 150p per share for the company substantially it and its prospects.

Guoco announced on May 9 it had acquired an 11.6 percent stake in Rank at 150 pence per share and was planning to raise its stake to 40.8 percent, and it therefore was obliged to make a mandatory offer. It stated that it was prepared to offer to buy the remaining shares at the same value.

Rank has argued that it is a leading UK gaming group with an established track record and opportunities for growth and value creation. It also believes it has the financial strength to create value and deliver shareholder returns.

Chief executive Ian Burke said: "Rank is an excellent business with strong positions and trusted brands in fundamentally attractive markets. We are executing a clear strategy to generate value for all shareholders, achieving sustainable growth in earnings and dividends through building Britain's favourite gaming-based entertainment brands."

"Given our strong financial position, we believe that shareholders should have the opportunity to benefit fully from the growth opportunities available to Rank. Fundamentally, we do not believe it is the right price at which to sell shares in Rank."