Shares in upmarket market travel operator group Travelzest plunged more than 20% after the firm announced it has ceased offer talks with Red Label Vacations.
Red Label had made an indicative proposal which offered a price at a premium to the current share price, but Travelzest felt the offer "significantly undervalued" the company.
The firm has also announced plans to improve underlying operating profits for the business by around £1.5m a year with the re-focusing of the group on its Canadian operations as it continues to divest the majority of its UK operations.
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Mark Molyneux, Travelzest's Chairman, said: "Following the termination of discussions with Red Label we will now focus all our efforts on generating profitable growth in order to maximise shareholder value. The key growth area for the company remains Canada and we will concentrate our efforts in this market.
"Creating value for our shareholders is of paramount importance to us. By divesting those assets that are not performing, particularly (in the current very difficult economic climate) in the UK, which contrasts with much better conditions in Canada, we are building a stronger business that is well positioned for future growth."
The share price fell 22.39% to 6.5p by 08:43.
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