North Sea explorer Ithaca Energy said it had ceased discussions with all parties regarding a takeover of the company.
In March the company's share price surged after it said multiple parties were interested in buying it.
However, Ithaca has decided that the potential offers on the table were not high enough.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The board has concluded that continuing the current process at this time was unlikely to produce a transaction with financial terms that properly reflect the value of the company, particularly in light of the current volatility in global markets and the short term softening in Brent crude prices," the company said.
"In reaching this decision the board of directors has fully considered the company's current value, its growth potential, the future value that can be delivered to shareholders and the responses of the third parties with whom discussions have been held."
Disappointed investors, who no doubt had hoped for a bidding war, sold out of the stock, pushing it down 29% by late morning on Tuesday.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
