Shares in British media company Mirror Group Plc fell sharply yesterday after German publishing giant Axel Springer AG ruled out a takeover bid. Mirror's shares, which soared to 250p this year as takeover speculation mounted, fell sharply after the Springer statement and were trading at 209p after the announcement, down 24p on the day.

In a short statement, Springer said it had made the decision after completing an extensive review of "all issues, including the various publishing aspects". No other information was given. Mirror Group was unavailable for immediate comment. Springer, which has called the British newspaper market the most attractive worldwide, confirmed on May 22nd it was interested in Mirror. But the German group stopped short of saying whether it would make a bid.

As Mirror Group's shares climbed steadily, British newspapers reported that a formal bid would be launched by the end of June. A tie-up would have created a major league European newspaper player, linking Britain's second biggest-selling daily, The Mirror, with Germany's topselling Bild Zeitung tabloid.

Analysts, who called Springer's withdrawal disappointing, said the stock could now slip below 200p. The Springer decision comes only a week after Mirror Group lost its deputy chief executive Mr Kelvin MacKenzie, one-time editor of the rival Sun newspaper.