UK's Craneware rejects Bain Capital's $1.3 billion takeover proposal

(Reuters) -British software firm Craneware said on Wednesday it has rejected a takeover proposal from U.S. private equity firm Bain Capital, stating that the 26.50 pounds-per-share proposal undervalued the company.

Bain Capital's proposal would have valued the British company at 939.4 million pounds ($1.27 billion) on Wednesday.

Craneware's shares were up marginally at 20.10 pounds at 0723 GMT.

Bain Capital separately said it would not make an offer for Craneware.

The proposed bid represented a 29.3% premium over Craneware’s closing share price on May 15, the day before Bain Capital disclosed its interest.

Craneware, which specializes in healthcare financial software for the U.S. market, currently has a market capitalization of about 710 million pounds, according to LSEG data.

The company's shares had previously fallen to a one-and-a-half-year low in April, following the announcement of U.S. President Donald Trump's "Liberation Day" tariffs.

($1 = 0.7425 pounds)

(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Tasim Zahid)