The Warehouse Group isn't going ahead with a proposed 590-million-dollar takeover from an Australian private equity group

Chair Dame Joan Withers says the deal, launched by founder Sir Stephen Tindall, doesn't have the critical shareholder backing needed to proceed.

She says the Board's decided to defer talks with that in mind - until such time as the proposal receives wider shareholder support.

In response - Warehouse shares dropped 13-cents - or 9.2-percent - to one dollar-28 late in the trading day.