Tyson Foods called off a $3.2 billion purchase of IBP Thursday. The decision was announced nine days after a U.S. Securities and Exchange Commission probe into IBP’s accounting practices at its appetizer unit, DFG Foods, uncovered potential manipulation of financial records and product theft, and mismanagement by former unit managers.

Many analysts aren’t surprised by Tyson’s decision. After IBP’s problems went public, analysts doubted that the company would be willing to pay the agreed-upon $30 per IBP share price in cash and stock. The investigation cost IBP $60.4 million against its fourth-quarter earnings.

"Unfortunately, we relied on that misleading information in determining to enter the merger agreement," Tyson said in a letter to IBP. "Consequently, whether intended or not, we believe Tyson Foods was inappropriately induced to enter into the merger agreement. Further, we believe IBP cannot perform under the merger agreement."

Tyson’s announcement came as a shock to IBP. To their knowledge, the deal was still in place. The poultry giant already had won a bidding war with Smithfield Foods for IBP. Now, the question remains whether Smithfield will put in another bid.