Renewable energy operator Econergy International has today confirmed that it has rejected a takeover bid from UK-based carbon trading specialist Trading Emissions Plc, claiming that the all-paper offer undervalued the company.

Trading Emissions issued a statement claiming it had made an approach to Econergy late last month, offering a share-for-share exchange at nil premium.

The development comes a day after Econergy announced that it had received a number of "preliminary approaches" about a possible takeover, adding that discussions were at an early stage.

That statement was prompted by confirmation from one of the AIM-listed firm's largest shareholders that it is reviewing what to do with its stake in the company.

The Tchenguiz Family Trust, which owns 18 per cent of the firm, said that it was assessing a number of options including "a potential offer for the ordinary share capital of Econergy, an offer to the Econergy Board in relation to specific assets, or a potential sale of their economic interest at a premium".

Econergy International builds and operates renewable energy projects across the Americas. The company currently has one hydro electric plant in operation in Bolivia and a further five projects under construction across Brazil, Costa Rica and the US. It claims to have saved almost half a million tonnes in carbon emissions since the company was founded in 1994.