HMV Group's most recent offer for book seller Ottakar's has been rejected. In a statement issued today (May 16) to the London Stock Exchange, Ottakar's claimed that HMV's renewed cash offer was at a p

HMV Group's most recent offer for book seller Ottakar's has been rejected.

In a statement issued today (May 16) to the London Stock Exchange, Ottakar's claimed that HMV's renewed cash offer was at a price per share "materially below" the current share price.

"The board of Ottakar's has informed HMV that it is not prepared to recommend the indicative offer," the books merchant added.

Ottakar's shareprice fell 7.62% to 303p ($5.70) after the announcement. Stock in HMV slipped 0.44% to 170.25p.

HMV's move came after corporate watchdog the Competition Commission on Friday (May 12) gave it the green light to make a new approach after declaring such a deal would not mean "substantially lessening of competition."

HMV, the U.K.'s music and entertainment market leader, had initially proposed the acquisition of Ottakar's through its own books chain Waterstone's in September 2005.

The original 440-pence ($8.28) per-share bid valued Ottakar's at around £97 million ($182 million). When it was referred to regulators, the offer automatically lapsed.

Both HMV and Ottakar's are continuing with discussions, according to the LSE statement, and a further announcement will be made in due course.

Ottakar's warned, however, that there can be no certainty that agreement will be reached on terms for a recommended offer.