A takeover move for Jurys Doyle Hotel Group has collapsed.
It said yesterday it had withdrawn support for a third approach by Precinct Investments after the consortium lost backing from its funders.
And Jurys - which owns the Jurys Inn hotel on Birmingham's Broad Street - said Precinct had failed to satisfy it with regard to possible alternative funding.
"Accordingly, the board no longer supports the Precinct proposal," Jurys said in a statement, adding it had also terminated the due diligence being carried out by Precinct.
Jurys, which had been approached with a provisional offer of 17.50 euros (£11.93) a share for the group last month, said it had been informed of Precinct's funding problem on Wednesday.
It is believed Precinct's banker, Anglo Irish Bank, pulled out after the consortium's main backer, Britishbased billionaire Simon Reuben, pushed for better loan terms.
Irish regulators have set a deadline of September 2 for Precinct to make a concrete offer for Jurys - which operates around 30 hotels in Ireland, Britain, and the United States - or walk away.
A spokesman for Precinct said it was attempting to resolve the funding situation.
"The onus is on us to give the Jurys board the confidence in the funding that they're looking for and we're working to address that at the moment," the spokesman said.
Brid White, analyst at Merrion Stockbrokers in Dublin said the focus now turned to Irish property developer Sean Dunne, who raised his stake in Jurys to 18.2 per cent on Wednesday, making him the largest single shareholder