Prosus had made a $6.3 billion offer for British food delivery firm Just Eat.
The Dutch internet conglomerate's Chief Executive Bob van Dijk announced the bid on Tuesday (October 22).
It puts the firm on course for a food fight over Just Eat with Dutch rival Takeaway.com.
Just Eat and Takeaway have been on course for a merger but the Prosus bid comes in at a 20% premium to Takeaway's offer - if based on Monday's closing share price ...
Though at 710 pence per share it's still below the original value of the bid.
Just Eat said the Prosus move 'significantly undervalues' the company and has been rejected.
Analysts said a bidding war for Just Eat between the two Dutch-based suitors now looms.
The Prosus CEO said he had not been able to reach an agreement during talks with Just Eat's board.
He now wants shareholders to consider the opportunity for a higher bid.
The offer is the first big move by van Dijk since Prosus went public last month.
Prosus is now a European tech giant worth $120 billion, largely due to its 31% stake in China's tech firm Tencent.
Scale is all-important in the fast growing $100 billion food delivery market, as global rivals such as Amazon-backed Deliveroo and Uber Eats fight to offer consumers the biggest choice.