Sanctuary ends its takeover talks

Morrissey is one of the cult names in Sanctuary's stable

Music management business Sanctuary has seen its shares drop 16% after it withdrew from talks with potential takeover suitors.

The firm, which represents artists including Sir Elton John, said it had withdrawn from all discussions with interested, but unnamed parties.

Sanctuary, which also has its own record company arm, did not give a reason for its change of plan.

The firm revealed last week that it was making a loss due to weak trading.

'Planned turnaround'

Sanctuary has been hit by delays to record releases by some of its represented artists.

"The board is determined to steer the company, which has an extremely strong roster of artists and a strong 30-year track record, back to a profitable trading position and back to sustainable long term growth," executive chairman Andy Taylor said.

Mr Taylor said that the firm would continue to support its artists as it turned around its finances. He maintained that Sanctuary had the support of its bankers.

Sanctuary's other clients include Kelly Osbourne, The Charlatans and Morrissey.