THE owner of Alton Towers has halted plans for a stock market flotation in the face of increasing market volatility.

Private equity group Blackstone has shelved a £2 billion initial public offering (IPO) for Merlin Entertainments – the world's second biggest attraction business behind Walt Disney.

The decision comes just days after Blackstone delayed plans to list U.S. travel business Travelport after failing to win the support of investors.

There has been severe volatility on markets in recent weeks, with the FTSE 100 Index slumping to a three-and-a-half-month low.

Fears over debt levels in European countries have sparked a hefty sell-off on global markets.