Shares in De La Rue were down on the FTSE 250 in morning trading after French firm Oberthur said it would not be making a takeover bid for the bank noted printer.

Yesterday De La Rue said it had rejected an offer that valued the company at 935 pence per share. In addition De La Rue last year rejected a 905 pence per share. The company claimed that the offers "significantly undervalued" it.

Following the rejection there were rumours that Oberthur might raise its bid still further to 950 pence per share.

However this morning Oberthur said that De La Rue had refused to engage in "meaningful discussions" and that this combined with its instant rejection of the enhanced bid meant it was no longer interested in making an offer.

Jean-Pierre Savare, President of Oberthur, said "Our Increased Proposal offered compelling and immediate value and was backed by our debt and equity partners. We have repeatedly sought to enter into constructive discussions with the Board of De La Rue over the last four months and we believe our approach could have offered a much needed catalyst to restore De La Rue's reputation. The Board of De La Rue has not only rejected our approach but has also ignored requests for clarity to be given to the market in relation to fundamental questions about the Company's customer relationships and financial prospects. As a result, De La Rue shareholders have seen no information to support De La Rue's assertion that the Increased Proposal significantly undervalues "the strong fundamentals of the Company and its long term prospects"."

By 09:05 shares in De La Rue were down 1.58 per cent on the FTSE 250 to 684.00 pence per share.