TAKEOVER talks between security and surveillance technology firm Petards and its major shareholder have broken down.

The Gateshead company said London-based Water Hall Holdings had made a preliminary approach about a takeover deal. But Water Hall said its proposal had not been accepted.

Water Hall chairman Raschid Abdullah said: “The board of Water Hall is disappointed that offer talks have been terminated in this way when it considered the proposed indicative terms were attractive but have been denied to the wider shareholder base.”

The firm said its paper offer had been at a premium to Petards’ share price but after it was refused it is not allowed under the Takeover Code to make another without Petards’ cooperation.