The spices and herbs manufacturer had originally planned to buy the London-based food manufacturer for a reported 1.5 billion pounds ($2.1 billion). Premier Foods makes Mr Kipling cakes and other pastries.
McCormick revealed that the bid was withdrawn due to the fact that the company was unable to form a proposal that would appease both its shareholders and the Premier Foods board.
“Extremely disappointing that the board could not recommend an offer at a 106 percent premium to the pre-announcement price,” a spokesman for the fund told Reuters.
MKC stock is down 2.2% Wednesday.