Shares of XP Power Ltd (LSE:XPP) dropped by 19% in early deals after Advanced Energy Industries binned its £470 million bid approach - one of three for the UK power systems group.
Advanced walked away after deciding 1,950p a share was as high as it wanted to go, adding that it felt it "captured the potential of future market recovery while factoring in near and intermediate-term market and operational risks facing XP Power as a standalone company".
It said it thought the latest approach offered XP's backers an "extraordinary premium", in cash, which would fully de-risk their investment.
At 8.12 am, XP's stock was changing hands for 1,258p, down 302p.
In a note reacting to the news, City broker Peel Hunt said it was now "back to basics" for XP, adding: "With the withdrawal of the offer, the speculative attraction diminishes for now.
"However, this puts greater pressure on the management to deliver performance that is captured in the share price, failing which a sale may become a likely outcome once more."