Shares of Herbalife Ltd. fell nearly 5 percent Monday on news that discussions about its possible acquisition by Whitney V LP had collapsed once again.

The Century City-based vitamin and supplement distributor said a special committee established to consider the offer has been disbanded, marking the second time in as many weeks the company nixed a proposed offer from the Stamford, Conn.-based private equity firm.

The company said last week that Whitney, its largest single investor with about a 27 percent stake, was considering raising its previous buyout offer of $2.7 billion which Herbalife rejected last month as too little.

Whitney helped take Herbalife public just over three years ago after partnering with Golden Gate Private Equity Inc.

Herbalife shares closed down $1.96 to $38.31 Monday on the New York Stock Exchange.