A $318 million takeover bid has stalled spectacularly.
Kathmandu has announced that Briscoe Group has increased its stake in the company by just 3.6 per cent.
Kathmandu's board had urged its shareholders to reject the $318 million offer.
They advised the total number of acceptances of its takeover offer had grown just 3.6 per cent.
When taken together with the 40,095,432 shares held or controlled by Briscoe Group prior to the takeover offer, this amounts to 23.49% of the total voting rights in Kathmandu.
Briscoe has confirmed it will not raise the value of its offer or extend it past Thursday, unless it became unconditional to a 90 per cent acceptance level.
Under the formal takeover proposal put forward, Kathmandu shareholders would receive five new Briscoe shares for every nine Kathmandu shares they currently own, plus a $NZ0.20 cash payment per share.