Devro saw £14m wiped off its stock market worth after the dampening effect of a big share sale by the Irish magnate that held talks with the sausage-skin maker was compounded by a profits warning.

However, Peter Page, who took over as chief executive earlier this month, insisted he was "extremely positive" about the longer term prospects for Devro and noted it had been upgrading factories which employ 500 staff in Lanarkshire.

Shares in Moodiesburn-headquartered Devro fell 6% in early trading following news that Acomita, the investment vehicle used by John Magnier, had appointed brokers to place its 13.3% stake, signalling it had lost interest in buying Devro.

The decision to offload the holding came 10 weeks after Devro said talks regarding a possible offer for the company with a party which it did not name had ended. Discussions were terminated after parties failed to agree what should be done about an £18m pensions black hole at Devro.

The announcement confounded fears in some quarters that outgoing chief executive Graeme Alexander would end a long reign by presiding over the sale of a member of the dwindling band of listed Scottish manufacturing firms.

Pitched at 150p a share the proposed bid would have valued the firm at around £242m. That compares with a valuation of £107.7m attached to Devro when the company was bought out of Johnson & Johnson in 1991.

After peaking at 147.75p on January 29, shares have been losing ground on diminishing expectations that a deal would be done.

John Neilson, finance director, said Devro had remained in contact with Acomita but declined to say what the two sides had discussed.

Yesterday's appointment of Goldman Sachs to market its entire holding in Devro by Acomita appeared to confirm it had decided to put its money to work elsewhere. A source said the share sale was completed yesterday.

Having originally bought the holding between 40p and 51p Acomita will be able to book a good profit.

Devro shares slipped a further 1% following the issuing of a trading statement after the company became aware that the market had been informed of the Acomita share sale.

In the statement, Devro said first half profits would be lower than the same period last year reflecting challenging conditions in mature markets, cost increases and operational challenges.

At its general meeting in May, Devro warned that first-half earnings would be hit by £700,000 fees regarding the Acomita bid and the appointment of a new chief executive. The company said trading had been mixed with mature markets like the UK being slower and developing markets more buoyant.

Yesterday Devro said first-half trading had been as indicated at the meeting.

Efforts to introduce new casings using Devro's improved facilities in Scotland have faced technical issues. However, "solid progress" is being made and the second half should show an improvement.

In the United States, rises in the price of collagen, Devro's main raw material, is expected to add £500,000 to costs in the second half.

Devro expects financial performance to strengthen in the second half as previously announced initiatives to increase efficiency and improve products bear fruit.

Peter Page, a former vice-president of the Aviagen poultry-breeding firm, said it was too soon to go into detail about his plans.

However, he said Devro could grow in developing areas without neglecting its "very attractive" mature markets.

"I am extremely positive about the long term from what I have seen and the depth of competence we have."

Asked about the outlook for jobs at the company's plants at Moodiesburn and Bellshill, he noted that Devro had equipped both to make new products, in an apparent indication of their strategic importance.

Shares closed down 8p at 107p.