Jan. 27 (Bloomberg) -- APN News & Media Ltd., the publisher of more than 100 newspapers in Australia and New Zealand, slumped in Sydney trading after Independent News & Media Plc abandoned the sale of its stake in the company.

The decision came after Independent News completed a strategic review that considered a number of “unsolicited expressions of interest” in its 39.1 percent shareholding, APN said in a statement filed to the Australian stock exchange.

APN’s shares fell 8 Australian cents, or 3.7 percent, to A$2.07 at the close of Sydney trading.

Dublin-based Independent News plans to sell non-core assets and aims to complete any disposals in the next 12 months, it said in a statement yesterday.

The “deteriorating state of credit markets” made it difficult for interested parties to put together a bid for its stake in APN, Independent News said.

The Irish company said on Oct. 31 that the sale of its stake in APN would allow it to cut debt by about 800 million euros ($1.05 billion).

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.

Last Updated: January 27, 2009 00:41 EST