The UK equity firm which made a $1.65 billion takeover bid for upmarket retailer David Jones has withdrawn its offer.
David Jones told the Australian Stock Exchange that it had received a letter from EB Private Equity on Monday afternoon withdrawing the offer.
In the letter, EB Private Equity says the recent publicity around its proposal has made it "difficult to proceed".
The retailer's shares were put in a trading halt at its request on Monday afternoon after its share price had sunk by about six per cent.
David Jones last Friday revealed it had received the $1.65 billion takeover offer from a British private equity firm, a move that initially sparked a sharp rise in the retailer's share price before doubts set in at the weekend.
The retailer had requested more information from EB Private Equity and offered to discuss the proposal with the company's chairman John Edgar.
However, David Jones said in light of the offer's withdrawal no discussions would now take place.
Shares in the department store chain shot up by nearly 15 per cent to $2.59 after the bid was revealed to the market last Friday.
However, the stock tumbled to as low as $2.37 on Monday after more information about the private equity firm was revealed in Australian media reports.
The stock clawed back some losses to hit $2.46 when the trading halt began around 1330 AEST.
On its web page, EB Private Equity describes itself as: "a Luxembourg and UK real estate and real estate related investor, developer and private equity partner."