Specialist publishing group Informa said a private equity consortium has dropped its £1.9 billion offer to buy the firm, sending its share price lower by as much as nine per cent.
The Carlyle Group and Hellman & Friedman initially approached Informa in June with an offer to acquire Informa for 506p per share in cash.
At the beginning of September, Providence Equity, The Carlyle Group and The Blackstone Group returned with a reduced price of 450p for the company, which Informa rejected.
But now the consortium has abandoned the bid entirely, sending Informa's shares down nine per cent in early trading.
"The board recognises that recent events in the credit markets have made it highly challenging to fund any offer.
"Notwithstanding this, the board remains confident about the group's prospects for the full year and the company confirms that current trading is in line with the board's expectations," Informa said in a statement.
Informa confirmed there are no other offers for the firm.
Market turmoil this week has put major deals on the backburner amid stock market volatility and concerns over the stability of the financial system.
HSBC also announced earlier today it has abandoned a bid for a majority stake in Korean Exchange Bank for $6 billion.
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