(Reuters) - New Zealand's Steel & Tube Holdings Ltd <STU.NZ> on Wednesday rebuffed a takeover offer from Fletcher Building Ltd <FBU.NZ>, saying it significantly undervalued the company and would take time to clear regulatory hurdles.
The non-binding, indicative offer, which was received on Sept. 10, valued Steel & Tube at NZ$282.2 million ($185.9 million) or NZ$1.70 per share, the company said in a statement.
The offer price represents a 27 percent premium to the steel distributor's last close.
"The proposed acquisition would need clearance under the Commerce Act, which would take some time to work through due to Fletcher's vertical presence and significant size in several steel product markets," Steel & Tube said.
Steel & Tube shares jumped 9 percent to NZ$1.46 in early afternoon trade.
Fletcher Building posted an annual loss in August due to mounting costs at its commercial construction unit and impairment charges from the consolidation of its Australian operations.
(Reporting by Devika Syamnath in Bengaluru; editing by Richard Pullin)
