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Navient Corp. (NAVI - Get Report) declined 5.4% to $11.98 on Thursday after hedge fund Canyon Capital Advisors LLC withdrew its "expression of interest" to acquire the servicer of student loans.

In a statement, Canyon said it "does not intend to participate in any acquisition process at this time." Canyon said, however, that it will instead propose a minority slate of independent candidates for election at Navient's next annual meeting "to bring a fresh perspective and oversight to Navient's strategic direction, about which Canyon has significant concerns as a shareholder of over 10% of Navient's outstanding common stock."

Canyon said it believes that Navient "rather than focusing on managing the legacy assets that Navient inherited when it was spun off from Sallie Mae ... has used the cash flows from those assets to subsidize the acquisition of new, non-core businesses with uncertain growth and profitability prospects."

Earlier this week, Navient received a buyout offer worth about $3.2 billion but rejected the offer saying it "substantially undervalues" the company.  

The board of Navient voted Monday to turn down the proposal of $12.50 a share from Canyon and private-equity firm Platinum Equity Advisors LLC.

Navient said in a statement filed with the Securities and Exchange Commission that it was notified Wednesday of Canyon's withdrawal. Navient said it "intends to continue its constructive dialogue with Canyon."