Mr Tim Waterstone has failed in his estimated £180 million bid to buy back Waterstone - the bookshop chain he founded.
Waterstone's parent group, HMV Media, rejected the offer, which was put together with private equity group PPM Ventures around two weeks ago.
Mr Waterstone said: "I am, of course, disappointed that HMV Media was unable to accept the offer."
He added the offer had been "the best price that could have been expected, and was certainly at the higher end of City valuations".
Mr Waterstone added "I am sorry if I have raised hopes and had them dashed."
He said it was now "probably best to allow a pause".
The Waterstone's business had seen a tough year last year, but in January reported a stronger performance, with an uplift in sales. PA
