The UK ship builder Harland & Wolff Group Holdings Plc (H&W) (AIM:HARL) said that it is scrapping plans to buy Isles Of Scilly Steamship Company Limited (ISSCL) after its bid was rejected. It added that it still plans to offer a fast ferry service on Penzance - Isles of Scilly route as well as offer dedicated freight service. "As previously announced, the company has been considering the opportunity to build and/or operate ferries to service the Isles of Scilly to Penzance route, which it believes is significantly underserved by its current operation.

The company continues to believe there is a clear strategic, operational and financial rationale for the proposed acquisition in pursuit of this and is disappointed that the board of ISSCL had unequivocally rejected its proposal," it said in statement. "The board of Harland & Wolff has concluded not to pursue this matter and accordingly the company does not intend to make a firm offer for ISSCL. Meanwhile, the company continues with its plans to offer a fast ferry service on the Penzance - Isles of Scilly route as well as offer dedicated freight service on this route.

The company will make further announcements on both these services in due course," it added.