Europe's largest ever private equity buy-out - the planned DKr76bn ($12bn) takeover of TDC, Denmark's leading telecommunications group - hit a hurdle on Sunday night when TDC's biggest shareholder said it would not accept the agreed cash offer, write FT correspondents.

ATP, a Danish pension fund that holds about 5.5 per cent of TDC's shares, said that while it recognised "the efforts and professionalism of the management of TDC in its handling of the tender offer", it believed there was potential for TDC to achieve a higher valuation as a listed company.