Financial services group City Pacific has withdrawn its merger proposal with fund manager MFS.
In a statement to the Australian Securities Exchange this morning, City Pacific said it had decided late last week that it would not go ahead with merger talks.
"City Pacific advises that after reviewing the demerger proposal announced by MFS on Friday 18 January, it informed Mr King, CEO of MFS, late on Friday night that it intended to withdraw its merger proposal, while maintaining an interest in either the business or assets of the MFS financial services division," the statement said.
Despite discussions continuing over the weekend, and a draft proposal being submitted, neither party was able to reach an agreement.
Earlier this year City Pacific made a $1.33 billion bid for a large part of MFS.
Late last week MFS chief Michael King announced the separation of MFS companies MFS Financial Services and property group Stella.
