John Wood Group PLC (LSE:WG.) shares plummeted 38% to 122p after suitor Dubai-based Sidara said it is walking away from takeover talks "in light of rising geopolitical risks and financial market uncertainty at this time".
In June, the FTSE 250 group agreed to hold talks, following a fourth bid from the engineering group, priced at at 230p per share.
After being granted access to the books for due diligence, the Dubai company, whose full name is Dar Al-Handasah Consultants Shair and Partners Holdings Ltd, was given an extension to its put-up-or-shut-up deadline to 9 August.
But today, Sidara said it "does not intend to make a firm offer for Wood".
Wood Group also issued a statement, saying that Sidara had confirmed last week that it had completed its due diligence.
"The board remains confident in Wood's strategic direction and fundamental prospect," it added, noting its trading update in July that showed growth in earnings and order book in the first half.
"We are pleased to reconfirm our outlooks for both this year and 2025."
Wood will publish half-year results on 20 August.
** Update: Adds share price, response from Wood **