UK's Harworth rejects Peel Holdings' $787 million bid on valuation grounds

Aug 7 (Reuters) - Harworth Group on Friday rejected a takeover proposal from its largest shareholder, Peel Holdings, saying the bid fundamentally undervalued the British land and property regeneration company.

Here are some more details:

• The board said the bid, which values the London-listed developer at about £582.9 million ($787.15 million), opportunistically targets the gap between its share price and asset value.

• Shares in Harworth were up 1.1% at 180p by 14:14 GMT, taking gains to 25% since the bid was disclosed on Thursday.

• Peel Holdings — part of British businessman John Whittaker's Peel Group, which holds a nearly 30% stake in Harworth — offered 172.5 pence in cash per share for the portion it does not already own.

• South Yorkshire-based Harworth said it remains confident in its ability to deliver "attractive" long-term returns for shareholders.

• The company also said it is focusing its investments on higher-return land and industrial projects, and has already approved in principle plans to cut costs over the medium term.

($1 = 0.7405 pounds)

(Reporting by Tuhina in Bengaluru; Editing by Vijay Kishore)