IEG Holdings Corp announced that it will not proceed with its unsolicited tender offer to exchange its shares for LendingClub Corp. stock.
Paul Mathieson, IEG Holdings' chairman and CEO, said his company's share price dropped significantly after the start of the offer.
"As a result, we have determined that the offer no longer has a reasonable chance of success," Mathieson said in a statement. The company's stock declined from about 83 cents per share to about 27 cents per share since the start of the offer.
IEG Holdings has no intention of launching another tender offer for LendingClub shares in the near future. Shares that have been tendered have not yet been accepted and will be returned to LendingClub stockholders.
LendingClub alerted its shareholders of IEG Holdings' plan to exchange several IEG common shares for each LendingClub common share and denounced the offer as "grossly inadequate." LendingClub pointed to a similar exchange offer for shares of OneMain Holdings Inc., which LendingClub called a "cash-raising scheme for IEG."