A possible full takeover offer for PGG Wrightson has fallen through.
The rural services company is already the target of a partial takeover offer from its largest shareholder, Agria.
But PGG Wrightson says a second party, thought to be Canadian rural services firm Agrium, will not be making a full takeover bid.
Chief financial officer Rob Woodgate says the second party's decision not to bid is just part of the process.
Mr Woodgate says the company's advice to shareholders has not changed - that they accept Agria's offer in the absence of a better offer before that bid closes on 15 April.
Agria already holds acceptances giving it about 40% of PGG Wrightson, including those of the second-largest shareholder, Pyne Gould Corporation, and Sir Selwyn Cushing's investment vehicle H&G.
An appraisal report by Grant Samuel values PGG Wrightson at 53c to 65c a share, and Agria's 60c offer compares favourably with recent deals for comparable companies.
PGG Wrightson's directors say, however, that while the offer may suit some investors, others may conclude the bid undervalues the company's longer-term prospects.