March 14 (Reuters) - Appen ( APPEF ) said on Thursday

U.S.-based digital data solutions firm Innodata ( INOD ) has

withdrawn a non-binding indicative proposal for a buyout,

sending shares of the Australian software firm tumbling more

than 17%.

Shares of Appen ( APPEF ) were trading down at A$0.8, after surging

more than 30% on Tuesday when it received the offer. Innodata ( INOD )

shares settled 8.3% higher at $6.48 on Wednesday.

Appen ( APPEF ) had said on Tuesday the proposal offered A$0.70 worth

of Innodata ( INOD ) shares per share of the company, which at the time

represented "a premium in excess of 100% to its share price at

the time the indicative proposal was provided".

However, it had refused to provide the actual offer value

or the date on which proposal was made, citing confidentiality.

"Overnight, Innodata ( INOD ) informed Appen ( APPEF ) that it was withdrawing

the indicative proposal on the basis that it was intended to

remain confidential," Appen ( APPEF ) said.

Appen ( APPEF ) was one of Australia's star technology firm, which

helped train AI models for a number of tech behemoths including

Microsoft ( MSFT ), Nvidia ( NVDA ), Meta, Apple ( AAPL )

, Adobe, Google and Amazon ( AMZN ),

until it lost 97% of its share value between 2021 and 2023.

The offer withdrawal comes at a time when Appen ( APPEF ) has been

implementing a raft of cost-saving initiatives and seen its

executive team being entirely replaced over the last two years.

The company posted an annual loss of $118.1 million,

although it had forecast a return to profit by the end of fiscal

2023.