After having an offer turned down in October, South Africa-based group Mediclinic said last week it was mulling the possibility of a fresh swoop although it has now canned that idea following a breakdown in talks.
South Africa-based Mediclinic saw its share price fall 35% to 539p in early deals, while Spire shares dived by 5% to 256.3p.
At the end of last month, Spire – in which Mediclinic holds a stake of almost 30% – rejected an offer which valued it at £1.2bn.
As a result, Mediclinic had until 5pm today (UK time) to either make a new offer or walk away. By choosing the latter, under City takeover rules it now has to wait another six months before it can make another bid unless there is a change in circumstances.
“Mediclinic is disappointed that it could not reach an agreement with the independent directors of Spire,” the company said after talks between the two collapsed over the weekend.
Mediclinic added that it will remain a “supportive shareholder”.