Shares of e-commerce group THG PLC (LSE:THG) tumbled 9.4% after the company terminated takeover discussions with private equity firm Apollo.
The owner of popular online brands such as Grow Gorgeous and My Geek Box stated that Apollo's offer significantly undervalued the company.
It further explained that the decision to discontinue talks was consistent with its response to prior approaches, which were also rebuffed on valuation grounds.
THG, originally known as The Hut Group, was once valued at £5.4bn. However, difficult trading, profit warnings and some market scepticism about its technology base have seen its market capitalisation eroded to £880mln.
In early trade, the shares were changing hands for 67.73p each, down 7.01p.