Sept. 5 (Bloomberg) -- Square Enix Co., the Japanese creator of the ``Final Fantasy'' role-playing games, abandoned plans to buy software developer Tecmo Ltd. after its offer was rejected.

Square Enix, which disclosed the decision through a regulatory filing today, fell 0.3 percent to close at 3,540 yen on the Tokyo Stock Exchange. Tecmo shares dropped 7.3 percent.

Tecmo, developer of the ``Dead or Alive'' and ``Ninja Gaiden,'' said yesterday it began merger talks with Japanese software maker Koei Co. after rejecting an offer of 920 yen a share from Square Enix. Koei shares declined 5.4 percent.

Square Enix said it received no response from Tecmo on why its bid was rejected.

To contact the reporter on this story: Taku Kato in Tokyo at tkato6@bloomberg.net

Last Updated: September 5, 2008 02:54 EDT