An improved and swiftly rejected takeover bid for investment firm Perpetual by a hedge fund and private equity consortium has intensified the pressure on the company’s board as traders scrambled to close bets that the acquisition of Pendal Group would proceed.

In a day of high sharemarket drama, investment management group Pendal Group rejected speculation that Perpetual may walk away from its agreed deal as “inaccurate and contrary to a certain and well-functioning market for corporate control,” while Perpetual’s board hit back, claiming it had a fiduciary obligation to consider its options amid interest from suitors.