Perpetual Ltd's top investor, Australian diversified investment firm Washington H. Soul Pattinson and Company, has increased its stake in the company to 11.66 per cent, according to an exchange filing made on Tuesday.

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This comes after the fund manager rejected WHSP's A$3.1 billion ($2.04 billion) takeover offer last week, saying the proposal undervalued its business.

WHSP previously held a nearly 10 per cent stake in Perpetual as of December 6, the day the takeover offer was made.

The proposal came at a time of consolidation in the Australian wealth management market. Perpetual bought rival Pendal for A$2.5 billion earlier this year and Regal Investment Fund picked up PM Capital last month.