Despite earlier reports that Coca-Cola Amatil had been successful in persuading the board of Neverfail Springwater to accept its latest takeover bid, the drinking water company has advised its shareholders to continue to reject Amatil's advances.

In a statement to the Australian Stock Exchange, Neverfail said it "continued to recommend that shareholders reject the conditional offer of A$2.35 per Neverfail share from CCA."

Neverfail directors said the new bid was below a "fair-value range" of between A$2.49-A$2.80 recommended by independent experts.

On Friday, Amatil increased its offer price for Neverfail from A$2.25 to A$2.35 per share, with the bid now valuing Neverfail at around A$226m (A$152m), 4.6% higher than Amatil's original offer.

The offer hinges on C-C Amatil, which owns 14.99% of Neverfail, getting 50.1% by Friday.

Neverfail said that in the event that C-C Amatil acquired more than 50.1% but less than 90%, it "will continue to recommend that shareholders do not sell their shares."