The buyout group bidding for Qantas Airways said it did not expect to proceed with its takeover offer after failing to win enough shareholder acceptances.
The Airline Partners Australia (APA) group, including Macquarie Bank, said it appeared that less than 50 per cent of Qantas shareholders had accepted the bid before the offer closed.
The A$11 billion ($9 billion) bid needed 70 per cent to win the bid, although 50 per cent would have allowed the group to extend the offer for another two weeks.
APA said earlier today it had control of 34.59 per cent of the airline and the success of its offer was on a "knife edge". Most analysts had expected a last-minute rush of acceptances by hedge funds that would push the offer through.
The offer has been hanging in the balance for weeks after some key shareholders said it was too low, forcing the bidders to ease their conditions and offer shareholders incentives to accept.
Balanced Equity Management, which controls about 4 per cent of the airline's stock, and UBS Global Asset Management, with 6 per cent, indicated they would not back the bid.