May 15 (Reuters) - British oilfield services and engineering firm John Wood Group said it had rejected a raised buyout proposal from Dubai-based company Sidara on Wednesday.

Shares of London-listed Wood Group fell 5.6%, to 189.30 pence at 1449 GMT.

Sidara's raised cash offer of 212 pence per share valued the company at about 1.47 billion pounds ($1.86 billion), 3% higher than its initial 1.42 billion pound


, made last week.

The firm, which provides consultation, asset management and engineering services for the energy and materials sector, said the latest proposal continued to "fundamentally undervalue Wood and its future prospects".

Founded in 1956 as Dar Al-Handasah, Sidara, as it is now known, is a family-owned engineering and consulting company. It now has until June 5 to make a firm offer for Wood.

($1 = 0.7918 pounds) (Reporting by Eva Mathews in Bengaluru; Editing by Pooja Desai)