The independent directors of Thorntons said that discussions with Newco have been ended because they believe that Newco's revised indicative offer of 130p a share undervalues the company.
Newco's proposal, which was still subject to a number of pre-conditions, including further due diligence and clearance by the Pensions Regulator, was significantly lower than its pre-conditional offer of 185p a share, which was announced by Thorntons on August 19 last year.
Thorntons also said that, following termination of discussions on the bid, Burnett and the independent directors had agreed that it would be in the best interests of the company for him to step down as chairman and leave the company immediately.
John Jackson will act as interim chairman until a permanent appointment can be made.
Thorntons will announce its interim results for the 28 weeks to January 7 on February 21.
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