Shares in Mr Kipling and Bisto maker Premier Foods (PFD) gave up their deal-speculation-fuelled gains this week after dropping by a quarter in a day.
The stock surged some 70 per cent when US spice maker McCormick emerged as a potential bidder for the company and rose another 11 per cent when the US business returned with an improved third offer of 65p a share. But rather than the third time being a charm, McCormick has backed away from the St Albans-based food manufacturer.
Management said it "would not be able to propose a price that would be recommended by the board of Premier Foods, while also delivering appropriate returns for McCormick shareholders".
For its part, Premier said it saw a "strong future" for the company as an independent entity, adding that the foundations had been laid for "shareholder value creation", particularly in light of the partnership it recently signed with Japanese company Nissin Foods, which now owns a 17 per cent holding.
The sale of this stake around the time McCormick was bidding for the group garnered criticism from major shareholders, including Standard Life Investments.
The Scottish investment manager's head of equities, David Cumming, said it did "not reflect well" on the objectivity and commitment of Premier's board regarding its engagement with McCormick.
Mr Cumming acknowledged that the 60p bid by McCormick - its second approach - was too low, but hoped there would be a higher bid and that the board would "pursue this option to the full".
