Australian hedge fund Regal Partners has officially ended its takeover discussions with Platinum Asset Management after nearly two months of due diligence failed to result in an improved offer, according to a report by Bloomberg.

Regal’s unsolicited AUD526m ($336m) bid, initially proposed in September, was rejected by Platinum as undervalued. While Platinum allowed non-exclusive due diligence starting 4 October, it had cautioned there was no assurance of a deal. Both firms have now agreed to terminate negotiations, “removing the uncertainty that has persisted since Platinum rejected Regal’s initial proposal,” Platinum said in a statement released on Monday.

This marks Regal’s second unsuccessful attempt at a public fund manager takeover, following its AUD1.7bn bid for Perpetual in 2022. While Platinum has faced ongoing challenges with outflows, Regal has grown its assets under management through strong performance in its hedge funds and strategic acquisitions of private investment firms.