Sir Michael Fay's bid to buy 16 farms formerly owned by the Crafar family is still on the table despite being rejected by the farm's receivers.
Receivers Korda Mentha on Monday rejected the $171.5 million offer by a consortium of central North Island farmers headed by Sir Michael for the 16 farms.
The receivers said they preferred the $200 million bid from the Pengxin International Group from Shanghai, China, which will require approval from the Overseas Investment Office (OIO).
Sir Michael said the decision was disappointing but not surprising, and the offer remained should the OIO reject the Pengxin bid.
"We were always the back-up position but the current decision by the receivers doesn't mean we are going away," he said.
"Our group of buyers remains ready if the Overseas Investment Office rejects the current Chinese contract."
Brendan Gibson of Korda Mentha said on Monday the Pengxin bid was "by far the best offer" and it continued to await the OIO decision.
"Whilst we received the offer from Sir Michael Fay, it was conditional, was a collaboration of several purchases and was at a price that continues to be unacceptable."
Korda Mentha would consider re-marketing the properties if the OIO rejected the Pengxin offer and might discuss them with Sir Michael's group, Mr Gibson told NZN.
The farms were put into receivership in 2009, owing about $200 million to creditors.
NZN