Capital & Regional PLC (LSE:CAL) tumbled more than 7% as rival Praxis pulled out of talks to buy the regional shopping centre owner.
In a brief statement, Praxis said it had "no intention to make an offer" for Capital & Regional.
Praxis had expressed an interest in July after another property group New River REiT, had said it was mulling an offer.
New River and Praxis both had deadlines of 12 September to make a formal offer.
C&R has been exploring a sale after seeing footfall pick up in its suite of shopping centres last year.
Shares in the group dropped 5p to 64p.