The decision to call off the sale of 26 per cent equity, a process started eight months ago, was taken after three days of discussion at the Board of IFCI on the conditions spelt out by the successful bidder -- a consortium of Sterlite Industries and Morgan Stanley.
"The bidder (Sterlite Industries and Morgan Stanley) was putting to many conditions along with the bid which was not acceptable to the board," an IFCI official told PTI.
Conditional offers, including the management control, could not be negotiated, he said. The process started with the appointment of Ernst & Young as consultant to identify a strategic partner in March-end the last stage on December 14 when the three suitors finally submitted the financial and technical bids.
Besides Sterlite Industries and Morgan Stanley combine, two other consortia which submitted bids were Shinsei Bank Ltd, Punjab National Bank and JC Flowers and Co; and Cargill Financial and Texas Pacific Group.
However, NRI billionaire Anil Aggarwal-led Sterlite Industries, jointly with global investment banking giant Morgan Stanley, emerged as the front-runner by quoting the highest price.
IFCI shares on Wednesday closed at Rs 100.05, down 1.04 per cent on the Bombay Stock Exchange.
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