Shares in UK cake maker Finsbury Food Group slumped this morning (16 July) after the company said talks over a possible sale had ended.

Finsbury’s stock was down 12.8% at 09:06 BST after the firm issued a statement revealing that negotiations had been halted.

“Further to the announcement made on 1 June 2009 regarding a preliminary approach, Finsbury announces that discussions have terminated,” the group said.

In June, Finsbury, which makes cake and bread for the UK’s major multiples, had admitted that the mystery approach for the business had been “exploratory in nature”. The company’s directors then believed there was “considerable doubt” an offer would emerge.

In March, Finsbury reported a 45% fall in half-year profits due to rising sugar and chocolate costs, as well as charges linked to the integration of its two main cake units, Lightbody and Memory Lane.