The Deltic Group has backed down in its attempts to merge with Revolution Bars, leaving the way clear for Slug and Lettuce owner Stonegate to move forward with a takeover.
Shareholders in Revolution will vote next Tuesday on whether to accept Stonegate's 203p per share offer.
Deltic released a statement just before a 5pm deadline today, which it had been given as the final time to confirm a formal offer. It said it was not going to put forward a cash offer, as Revolution had encouraged it to do, and that it would also not be formally putting forward its merger proposal due to "the absence of full engagement from the directors of Revolution".
However, the nightclub group did not fully rescind its interest, saying it reserved the right to declare another offer should another party put in an offer for Revolution, or if the Stonegate offer is withdrawn or lapses.
Yesterday Revolution said it was not likely to consider a merger proposal put forward by Deltic and urged the company to make a cash offer instead.
But some analysts argued that Revolution should consider Deltic's proposal as it was worth more than Stonegate's, which at 203p is priced below Revolution's current market value of 206.5p per share.