UPDATE 1-Critical Information drops approach for Centaur

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Nov 12 (Reuters) - Critical Information Group (CIG.L) said on Thursday it would not proceed with a takeover offer for British business publisher Centaur Media Plc (CAU.L).

Centaur's shares, which gained 33 percent in the last three months, fell 8.4 percent to 46.5 pence by 1043 GMT on Thursday on the London Stock Exchange.

Centaur -- which publishes a range of business-focused magazines, including "Marketing Week", "Money Marketing", "The Lawyer" and "Creative Review" -- had earlier rejected Critical Information's indicative proposal, saying it materially undervalued the company.

Last week, UK's Takeover Panel had given a Dec. 7 "put up or shut up" deadline to Critical Information to make a bid for Centaur Media. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Pradeep Kurup)