London-based private equity firm BC Partners and the Canada Pension Fund have had a $2 billion joint takeover offer for Center Parcs rejected by owner Blackstone Group.
US investment conglomerate Blackstone is understood to have rejected the offer because it undervalued the UK holiday park operator.
The current owner is understood to believe that Center Parcs is worth well over £2 billion.
A report on Sky News last night said it would proceed with its plans to either auction or float the group at some point next year.
BC Partners and CPP are expected to come back with another offer for the leisure group. Blackstone hired investment bank Rothschild last month to draw up list of strategic options for Center Parcs.
Among those options is a refinancing of the company that would provide shareholders with sizeable payday before a sale or flotation.
Blackstone took over the company in 2006. Center Parcs reported a rise in annual revenues to £314.6 million for the year to April.
A fifth Center Parcs village was opened earlier this year in Woburn Forest and the come has set its sights on opening another in Ireland
Blackstone and BC Partners declined to comment on the Sky News report.