There was a large increase in the number of mergers and acquisitions (M&A) collapsing this year, new figures show.

According to data from Thomson Reuters, M&A activity around the world fell by 35% in 2008 compared to the year before.

At the same time, the number of deals falling through rose to 1,100, up from just under 800 in 2007, the news provider reports.

Two of the most notable withdrawals were Microsoft's unsolicited bid for Yahoo! and BHP Billiton's offer for rival Rio Tinto.

The total value of M&A deals cancelled this year was almost $800 billion (£540 billion). More than $815 million was lost to banks in fees.

James Stynes from Deutsche Bank Securities said: "What drove the cancellations was unexpectedly dramatic gyrations in various markets."

Reuters also reported recently that senior managers and chief executives across Europe are expecting a number of "transformational" M&A deals to take place next year.