Roto Smeets chief executive John Caris disagreed with reports that the £129m deal, which would have created pan-European print giant in which Quebecor World would hold a 29.9% stake, overvalued the takeover target.

Caris said: "We are really not sure why the shareholders voted against the bid. Up until last week, there was strong support for the bid. I have spoken to a number of shareholders who supported the deal and they also are unsure as to why the deal was vetoed."

Quebecor World president and chief executive Wes Lucas said: "While we believed this transaction represented an important consolidation opportunity for the European industry, our European business remains a leader, with one of the most extensive and technologically advanced pan-European platforms."

The deal had been approved by both Roto Smeets' management and supervisory boards before being voted out at an extraordinary general shareholder meeting yesterday.

Both parties said they would continue to look at their options, including "consolidation opportunities".

Caris said he has not given up on the deal. "Never say never," he concluded.

Quebecor World was hoping to alleviate some of its debt burden with the sale, and news of the fallout sent shares down nearly 40%, though they rallied later in the day.

However, some reports suggested that even insolvency could be possible for the print division as it faces pressures to secure credit, while shareholders in parent company Quebecor are unlikely to want to back Quebecor World in its current position.

Unite assistant general secretary Tony Burke said he was in contact with members at the UK plant in Corby and with unions in other Quebecor companies across Europe.

"This decision is a real concern to our members and their families. It comes at a time when we thought we had achieved stability, particularly for our members at Corby.

"It throws everything back into the melting pot and it will have an effect on the rest of the UK and EU magazine printing industry as everyone was watching to see how this deal settled down and was guessing the next move. We are currently awaiting further developments," he said.