Finncap tumbled on Friday after it said that takeover talks with Panmure Gordon had ended.
The investment bank announced in October that it had received indicative non-binding proposals from peer Panmure about a possible combination and that early-stage discussions were ongoing.
“As a result of initial discussions, the boards of directors of both finnCap and Panmure Gordon believed that there was sufficient cultural fit and strategic and commercial logic to merit examining a combination of the two businesses,” it said in a statement late on Thursday.
“However, following further discussions and in light of each company’s strengths as independent entities, each board has concluded that it is not possible to find mutually acceptable terms or structure for such a combination.
“Today, the parties have agreed to end these discussions.”
At 0810 GMT, finnCap shares were down 18.9% at 15.00p.