Entertainment group Sanctuary has dealt investors a double blow when it issued a fresh profits warning and said an earlier takeover approach was unlikely to lead to an offer close to its current value.
The group, whose portfolio of artists includes Sir Elton John and Beyonce, said trading had remained tough since a half-year profits fall in June, and added that a further deterioration was likely.
Shares slumped by a third as Sanctuary also said talks with the unnamed party behind an approach in June were unlikely to lead to an offer "at or near to the current share price".
However, it added that talks were ongoing with a number of other parties about a "range of possible transactions", including a possible offer for the firm.
A period of rapid growth saw it buy up several large artist-management companies, but problems at units such as Sanctuary Urban - headed by Mathew Knowles, father and manager of Beyonce - have hit a sour note in recent months.
This included an unexpected profit warning in June.
This led it to say full year earnings were likely to be "substantially lower" than last year.
The group runs the largest global management business for music artists with stars such as Manic Street Preachers, Nelly, Morrissey and Iron Maiden on its books. Shares closed down 7.25 at 10p.