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Link Administration Holdings Ltd. is rejecting changes Dye & Durham Ltd. has proposed to its takeover offer for the company after a decision by the U.K. Financial Conduct Authority (FCA).

The FCA has said it will not approve Dye & Durham’s acquisition of Link Group unless it covers any shortfall, up to a maximum of £306-million, in relation to any restitution or redress payments it may levy in its probe into the collapse of LF Woodford Equity and Income Fund, which was managed by Link Fund Solutions Ltd.

FCA approval is a condition of Dye & Durham’s deal to acquire Link.

Dye & Durham had agreed to pay A$4.81 per Link share.

Under the revised offer, it wants to pay A$3.81 per Link share plus up to A$1 per share depending on the outcome of a investigation by the FCA within 24 months of the closing.

The Link Group board says it is unable to recommend the new proposal and it is evaluating its alternatives.