Shares in Erinaceous fell 14% yesterday amidst rumours that HBOS was ready to walk away from its takeover bid for the company.

HBOS is thought to have made an indicative 300p a share offer two weeks ago, but it is now thought that they could pull out of the deal as early as today.

Previous offers for the company from 3i, Vincent Tchenguiz’s Consensus Business Group and Bridgepoint have all fallen away.

Erinaceous and HBOS refused to comment.