New Delhi, Jan 9 : Zee Entertainment shares were down 8 per cent on Tuesday after reports that Sony is planning to call off the proposed merger. Zee Entertainment shares are trading at Rs 254, down 8.3 per cent on BSE. According to media reports, Sony India is close to calling off the merger with Zee Entertainment. Sony is likely to issue a termination notice by January 20 and now the decision on who would be at the helm of the merged company is the contentious issue, according to these reports. After receiving all necessary regulatory approvals, this breakdown can be a setback to both Sony and Zee, having both reported subpar growth over the last year, Emkay Global Financial Services said in a report. 'We believe the merger not going through will be a lose-lose for both parties, particularly in the face of competition with a much larger entity of Reliance-Disney (if the merger goes through). Both parties will potentially have to recalibrate their strategies from ground zero, which would be a tall order,' the report said. On Zee Enterprises, it said: 'We believe clarity should emerge in the next couple of weeks regarding a final decision concerning the merger, and if it does not go through, we see significant downside from current levels. Hence, we advise caution in the stock." /IANS