UK-based waste management firm Shanks on Tuesday walked away from talks with Carlyle Group rejecting the latter's final buy out offer. Shanks' shares, which has been on a roll since the discussion started in December last year, dropped over 16 per cent after the company issued the statement.

The revised offer of 476 million pounds, or 120 pence a share, received from private equity firm Carlyle Group on Monday grossly under valued Shanks, the company said in its statement. Earlier, Carlyle offered 536 million pounds, or 135 pence per share, for the company in its December offer.

When Shanks rejected Carlyle's earlier offer, sources in the company were expecting a revised offer of around 150 pence per share.

Chairman of Shanks, Adrian Auer, said that the private equity firm did not offer a price that reflects the true value of Shanks.

Carlyle Group offered no reason for such unexpected reduction in its offer price.

Meanwhile, on the London Stock Exchange Shanks shares though recovered from the day's low of 95.90 pence, it remained nearly 16.20 per cent down at 100.90 pence from its previous close of 120.40 pence.