Music management business Sanctuary dealt a fresh blow to investors when it pulled out of talks that could have led to a takeover offer.

Sanctuary, whose portfolio of artists includes Sir Elton John and Beyonce, said it had withdrawn from all discussions with parties that had expressed an interest in the business.

The move wiped around a fifth off its share price and came days after it issued the latest in a series of profits warnings. Shares fell to a new low of 6.4p yesterday, having stood at 43.75p at the start of June.

The group, which is also the UK's largest independent record company, said last month that it was in talks with a number of parties about a "range of possible transactions", including a possible offer. The company did not disclose the parties involved in the talks.