British newspaper publisher Daily Mail & General Trust is keeping its regional newspaper business after an attempted sale did not attract high enough offers.
The announcement from the company today sent its shares tumbling.
Investors had hoped the Daily Mail would raise up to £1.5 billion (€2.2 billion) from selling Northcliffe Newspapers, Britain's biggest regional newspaper publisher, and return some of the proceeds to shareholders.
This morning, however, Daily Mail shares were down 10.0 per cent at 671 pence, the biggest fall on the benchmark FTSE 100 index and reversing gains made on November 30th when the firm unveiled a strategic review to consider selling Northcliffe.
Shares in fellow regional newspaper publishers Johnston Press and Trinity Mirror also fell.
Analysts said investors were likely to refocus on the decline in circulation and advertising revenues afflicting local papers.
Daily Mail, which owns the national newspaper of the same name as well as London's Evening Standard, said it had received three offers for Northcliffe and proposals to acquire parts of the business.
The company declined to identify the bidders or the prices offered.