SHARES in SSL International tumbled yesterday after the company revealed takeover talks had collapsed.

The group, whose brands include Scholl footcare products - produced in Peterlee, County Durham - and Durex condoms, has had a turbulent time since its creation in 1998 from the merger of London International Group and Seton Scholl.

It announced in July that it was in talks about a potential takeover offer.

But the Cheshire group revealed last night that with no formal offer on the table, the board had decided to bring the discussions to an end.

Chairman Ian Martin said: "To prolong uncertainty any further is not in shareholders' interests."

The company said that it was pressing ahead with its strategy of focusing on its consumer healthcare brands such as Durex and Scholl to drive future growth, while selling off its medical business.

Updating investors on its current performance, the company said that the strategy was already beginning to pay off, with trading in the first five months of its new financial year, which began in April, in line with earlier expectations.

The group said that it was on course to meet its targets for the full year.

Meanwhile, Mr Martin said that the group's divestment programme was advancing, with further announcements on the subject expected.

Shares had fallen nine per cent, or 31p, to 311p, by the time markets closed.