Talk America (NDAQ:TALK) moved down 10% today after Sun Partners withdrew its $9 cash bid for the company (covered in a previous article). According to an 8K filing with the SEC:

"On October 23, 2006, Talk America Holdings, Inc. issued a release announcing that Sun Capital Securities Group, LLC (“Sun Capital”) had advised Talk America that it has determined, after extensive due diligence review and consideration, that it would not make a definitive offer to acquire Talk America at a price greater than the $8.10 price per share provided under Talk America’s September 22, 2006 merger agreement with Cavalier Telephone Corporation and, accordingly, that Sun Capital was withdrawing its earlier conditional proposal to acquire Talk America."

Currently the stock is trading at around $7.85 per share, which represents a 3% discount to the $8.10 offer, which is still likely to go through. However, some investors are now concerned that Sun Partners may have found a problem in their extensive review of the company that may jeapordize the $8.10 per share offer.

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