Chrysalis hit after bid rejected

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Shares in UK record label Chrysalis tumbled by as much as 20% after it rejected a £100m ($196.6m) takeover approach and ended all bid talks.

Chrysalis, whose artists include current UK chart topper Estelle and David Bowie, said an offer for 155p a share "undervalues the company".

Management said it had engaged in talks with "numerous parties" over the past few months.

But the credit crisis had hurt their ability to make an "acceptable offer".

The company effectively put its music publishing business up for sale after selling its radio stations, which included Heart and Galaxy, for £170m last year.

It has now taken down the for sale sign, adding it will focus on its core asset, the music publishing catalogue, and building its roster of talent.

Chrysalis hopes a quiet release schedule in the first half of the year will be offset by new album releases in the second half of the 2008 financial year from artists, including Gnarls Barkley, The Raconteurs, One Night Only, Estelle and Feeder.

Shares in the firm closed down 13.7%, or 18.5 pence, at 116.50p after hitting a low of 105.5p.