Shares in Cineworld (LON:CINE) plunged over 16 percent on Wednesday morning, after confirming it was in talks to buy US cinema chain Regal in a deal worth £2.7 billion.

The agreement to buy the chain, which is currently at an advanced stage, spooked investors on Wednesday morning. The takeover would require a rights issue, with Regal being worth almost 50 percent more than Cineworld’s market capitalisation.

The deal has already gained approval from the Cineworld’s largest shareholder, but Cineworld shares are still heading for their largest one-day price drop in a decade as other investors remain unconvinced.

Its share price tumble weighed on the FTSE 100 on Wednesday, with shares currently down 16.81 percent to 577.75 (1149GMT).