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Shares in used tech reseller MusicMagpie (LSE: MMAG) plunged 18% on Monday after potential suitors BT Group and Aurelius Investment Advisory confirmed they don’t plan to acquire the company.
Last week, MusicMagpie revealed it was in the early stages of takeover discussions with telecoms firm BT and asset manager Aurelius. Both companies had until December 18 to announce firm intentions to make an offer or walk away.
On Monday, BT stated it does not intend to make an offer for MusicMagpie. Additionally, MusicMagpie announced that Aurelius had informed the company on Friday that it also does not intend to put forward an offer.
MusicMagpie stated it “continues to seek potential buyers for the entire issued and to be issued share capital of MusicMagpie, and, as such, remains in an offer period.”
The withdrawal of BT and Aurelius from takeover considerations represents a major setback for MusicMagpie. The company’s shares plunged on the news, erasing recent gains since the talks were first confirmed last week.
MusicMagpie has struggled with declining sales and profits amid economic headwinds like postal strikes and weak consumer confidence. Its US division Decluttr also had disappointing performance as the shift to music and video streaming cut into disc media sales.
MusicMagpie shares are now down 33% year to date.