Shares in the outsourcing group Mouchel (LON:MCHL) plunged 30 per cent as it said it had ended talks with potential suitors.
A number of would-be buyers registered an interest in the group, which provides consulting and business services for public sector clients, with rivals Interserve (LON:IRV) and Costain (LON:COST) leading the bidding.
However both companies dropped the value of their offers after carrying out due diligence on Mouchel.
The stock tumbled 43.5 pence to 104 pence in a frenetic opening hour.
Today Mouchel dismissed the bid interest as an "unwelcome disruption" as it unveiled a 73 per cent fall in first half profits to £4.1 million.
Chief executive Richard Cuthbert said: “"It has been another challenging period for Mouchel.
“Our clients have been impacted by the tough economic climate, leading to cuts in capital and maintenance programmes and a decline in spending, which has negatively affected our performance. “Furthermore recent corporate activity has been an unwelcome disruption to our business.
“We are nevertheless trading broadly in line with our expectations.”