European stocks were down by mid-afternoon yesterday, after Greece's creditors provided Athens with a new set of proposals after earlier rejecting the Greek plan.
The Stoxx Europe 600 Index slipped 0.5pc to 397.05 at 2.09pm in London. Shares had earlier pared losses, but extended declines after Agence France-Presse reported that Greece turned down the counter proposals.
The ASE Index snapped a four-day winning streak, falling 4pc, for the biggest drop among western-European markets. Portugal's PSI 20 Index slid 1.5pc, for the second-worst performance.
By mid-afternoon in Dublin, the ISEQ Overall Index was down 0.31pc or 20.04 points to 6,365.70.
The leaders on the Dublin market included Paddy Power, which was up 0.09pc to 77.90, while insulation group Kingspan increased 0.1pc to €21.56.
On the other side of the board, fruit company Fyffes was down 2.2pc to 9 cents by mid-afternoon, while packaging giant Smurfit Kappa slipped 1.3pc to €26.32.
Ahead of a planned Eurogroup meeting - the third in the last week - Greece's creditors handed the government revised terms for a deal to unlock bailout funds as Prime Minister Alexis Tsipras expressed shock that his own proposals had fallen short.
The new terms were sent as he prepared to set off for Brussels and a meeting with the heads of the European Central Bank, International Monetary Fund and European Commission.
"A deal has been rejected and it's not as clear cut as it was a couple of days ago," said Jasper Lawler, a market analyst at CMC Markets in London.
"They're probably going to come up with a last-minute fudge. There's still some lingering hope that they'll bring more proposals, enough to get to a deal before this deadline."
European shares capped their biggest four-day rally since January on Tuesday as the region's leaders agreed that Greece was finally getting serious about a deal.
Among stocks moving on corporate news, Delhaize Group slid 6.4pc after agreeing to an all-share takeover offer from Royal Ahold.
Bouygues tumbled 8.2pc after rejecting billionaire Patrick Drahi's bid for its telecommunications unit. Drahi's phone and cable unit Numericable-SFR, which made the offer, slid 8.6pc. Its holding company, Altice, dropped 6.1pc.
Rival Orange fell 3.1pc and Iliad lost 7.3pc. Elementis plummeted 17pc after forecasting full-year earnings would be below market estimates.
Julius Baer Group rose 2.6pc after Switzerland's third-largest wealth manager said it will take a provision of $350m to settle a US criminal investigation into whether it helped Americans evade taxes.
Shell pushed energy companies to the second-best performance of the 19 industry groups on the Stoxx 600.