Shares in Nylex (NLX), manufacturer and distributor of plastic products, fell by as much 22.5% after the takeover proposal from CHAMP Private Equity was withdrawn.
"CHAMP today advised Nylex that they will not be making a firm offer on the terms of their indicative proposal of 23 November 2007," chairman of Nylex, Peter George said.
"Discussions between Nylex and CHAMP have therefore ceased," he added.
The withdrawal was received after the markets closed on Friday, driving the shares down to open at a 10% discount on Tuesday morning.
Nylex chairman Peter George attributed the withdrawal to the current market volatility.
"Nylex's board and management were not surprised that the indicative proposal could not be consummated in view of the recent turbulence in global financial markets and remain committed to maximising value for our shareholders," George said.
"Looking forward, we are strongly positioned to continue to generate growth from our unique group of businesses and derive additional benefits from the restructuring programme."
On 23 November 2007, CHAMP made a 100% cash offer of $2.65 per ordinary share or convertible note and $0.81 per option. The offer represented a 44% premium over Nylex's closing price on the same day of $1.84.
Stock ranged between $1.55 and $1.80 during intraday trading, to close at $1.65.
About 121,000 shares had changed hands.
