Italian oil company ENI has dropped a possible $3.5 billion bid for Burren Energy after the oil producer said it wanted more than £12 per share.
Burren said ENI was not prepared to increase its indicative bid, which was raised from a £10.5 proposed bid in September, and it withdrew from talks when Burren said this would be required for board approval.
Burren shares traded down 12.37 per cent at £10.41, compared to a 0.41 per cent drop in the DJ Stoxx European oil and gas sector index.
Although Burren said last month it had received a number of takeover approaches, ENI was seen as the best fit for Burren's assets and most likely to offer a strong price.
ENI said it reserved the right to resume bid talks if another bidder emerges or if invited by Burren's management.