Drinks and snacks company C&C called off a planned £700 million flotation just hours before a deadline to sign up for shares.

The group cited market volatility for its decision, which followed similar moves last week by Yellow Pages business Yell and DIY giant Focus Wickes.

Both had also been lining up a float on the London Stock Exchange.

A statement from C&C, which had been due to begin conditional trade in London and Dublin tomorrow, said: "In the light of current economic conditions, the board of directors of C&C group has decided to withdraw the initial public offering of the company."

A company source said although promotion of the flotation went well, market uncertainty won out in the end.

The spokesperson said once the market had stabilised, the company would review its position, adding: "Everybody is very disappointed we can't proceed."

Analysts believed C&C's planned flotation would go ahead despite the recent market turmoil and the postponements by Yell and Focus Wickes and fashion label Prada in Italy.

The company owns brands including Tayto crisps and Ballygowan mineral water and had been seen as a more reliable bet for investors than firms from new economies such as telecoms or software.

Fears that the weak market for new share issues could hit other floats were eased by confirmation from luxury goods brand Bur-berry that it remained on track to join the market.

South African-owned stockbroker Investec also released plans to obtain a listing in London. Conditional trading on the London Stock Exchange is expected to start on July 22.