Shares in British retailer Woolworths plunged nearly a third today after buyout firm Apax Partners dropped its $1.6 billion takeover bid for the chain.
Woolworths shares reached 29 per cent at 39 pence by early this morning, back at their level before Apax's approach in late January. Apax's offer had been indicated at 58.2 pence per share.
Private equity firm Apax said late yesterday that during its due diligence on Woolworths, "Apax has been unable to confirm certain key cash items and has decided that it will not proceed with an offer".
Responding to Apax's withdrawal, Woolworths said sales at its main chain were down 3 per cent on a like-for-like basis in the first 10 weeks of its financial year.
Woolworths also said it would now pay a final dividend of 1.26 pence, making the total dividend 10 percent higher at 1.65 pence.
