Shares in HMV Group have dropped nearly 4% on news that private equity firm Permira has pulled out of talks to buy the music retailer.
Permira said it was "disappointed" at last week's decision by HMV to reject its £842.7m ($1.47bn) offer and would no longer be bidding for the firm.
The 210p a share offer followed an earlier bid of 190p.
HMV has been struggling against falling sales and profits recently amid tough conditions on the High Street.
"Permira is disappointed at the response of the board and believes that the revised 210p per share proposal represented a compelling proposition for the shareholders of HMV," said Permira in a statement.
"Accordingly, in light of the board's response, Permira has decided not to proceed."
Shares in HMV closed down 7.5 pence, or 3.9%, at 183p on Monday.