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Originally Posted by ninty
Just be upfront and tell them you are no longer interested. You don't even have to say why if you don't want to.
Dear Mr. X
I regret to inform you that I am no longer interested in the position offered by your company due to certain circumstances.
I apologize for the inconvenience and wish you and your company the best.
Sincerely,
Mr. Y
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also very well put and professionally stated