UPDATE 1-Malaysia's Puncak rebuffs Selangor second time

* Syabas unit unable to decide without federal govt consent

* Abass only water firm to accept

(Adds decision by Splash and Abass, bullets)

KUALA LUMPUR, June 29 (Reuters) - Malaysian water company Puncak Niaga (PNHB.KL) has turned down a 1.94 billion ringgit ($548.6 million) offer from Selangor state because of the way the bid was valued, Puncak said on Monday.

Puncak is the largest of the three main water operations in the central Malaysian state, whose offer was part of a federal government plan to nationalise the country's fragmented water industry.

The opposition-controlled state, seeking to complete a takeover by June 30 to halt a 37-percent price hike Puncak, raised its bid by 76 percent last week.

Puncak said it rejected the offer because the valuation was not based on the discounted cashflow method, a more common valuation for mergers and acquisitions.

"Puncak is not agreeable to the valuation method adopted by the Selangor state government which is based on one-time book value of the assets," Puncak told the stock exchange in a filing.

"The book value method looks only at their fixed assets, without taking into account their future earnings. If the offers were made based on DCF method, they should get a higher offer price," said a fund manger from a bank-backed asset management firm who asked not to be identified.

Last week Selangor also made a 3.36 billion ringgit bid for Puncak's 70 percent-owned unit Syabas. Puncak said Syabas required prior written consent from the federal government ruling party.

Meanwhile, Splash, another water company with a 30-year concession in Selangor, has also rejected a 2.98 billion ringgit offer made last week by the state government, said construction company Gamuda (GAMU.KL), which owns 30 percent of Splash.

"Splash is of the opinion that as Splash is an on-going concern, the discounted cash flow method is the appropriate method of valuation," said Gamuda.

Puncak and Splash rejected the offers even after Selangor sharply raised the price after a lower bid was rejected in February. All the new offers have been based on one-time book value of the assets. [ID:nKLR491433]

Kumpulan Perangsang (KPSB.KL), controlled by the Selangor state government, said its unit Abass has in principle accepted the state's 946 million ringgit offer, making it the only water operation to accept a buyout offer. (Reporting by Soo Ai Peng; editing by David Cowell ($1=3.536 Malaysian Ringgit)