US asset management firm, The Carlyle Group, has called off its long, drawn-out discussions with Chemring about a potential takeover of the FTSE 250 defence contractor.
Ahead of the US firm's third-quarter results scheduled for release on Thursday morning in New York, the company announced that it no longer intends to make an offer for Chemring.
In a statement on Wednesday afternoon, Chemring said: "On August 17th 2012, Chemring announced that it had received a highly preliminary expression of interest from Carlyle in relation to a possible offer. Carlyle today confirms that it does not intend to make an offer for Chemring."
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
Shares were down over 13%at 234.5p by the close in London.
The offer deadline had been pushed back on two separate occasions; the company said it would give a further update in its pre-close trading update on November 27th.
Chemring disappointed the market last week after reducing its profit expectations for the year ended October 31st following delays and technical problems in a number of contracts.
The company attempted to reassure investors that near-term opportunities remain intact despite the withdrawal of interest and tough market conditions.
"Whilst Chemring continues to face near term challenges resulting from defence budget constraints in its NATO markets, which are not expected to ease in the immediate future, the company has market leading positions and manufacturing expertise in the fields of counter-IED, countermeasures, munitions and pyrotechnics.
"In addition, the company's non-NATO markets will continue to provide the business with further opportunities and gives a balanced exposure to global defence spending."
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Cash in on your attic: Thousands could be sitting dormant in your storageSelling your valuables at auction could be far more lucrative than you think. We take a look at how auctions work, and some tips to help you maximise your profits
