Fisher and Paykel Appliances has taken its finance division off the market after bids failed to match valuations set down by its board.
Following the news, F&P shares closed down 3.4%, or 8c, yesterday, at $2.30.
In mid-November, F&P announced it was putting its finance division, which has operated for more than 30 years, on the market following unsolicited expressions of interest.
At the time, the finance division loan book for the first half of the year to September stood at $546 million and it contributed $13.3 million in earnings before interest and tax to the group.
ABN Amro Craigs broker Peter McIntyre said although a sale would have improved F&P's overall valuation, it was always going to be difficult, given the volatility of the New Zealand finance sector and global credit crunch.
The finance division remained a "strong performer'' within the group.
"Obviously, there's no bidders to pay a realistic price and they're not prepared to give it away,'' he said.
He noted that consumer spending in the US and Australia, major F&P export markets, was down and the purchase of whiteware would be affected the most.
In a statement yesterday, chief executive John Bongard said he was "comfortable'' to be taking the division off the market, noting F&P had stuck to its earlier decision it would only sell if the value of any offer exceeded its own valuation.
"The business is performing well and is strongly positioned to take advantage of the opportunities resulting from the reducing number of participants in the finance sector,'' he said.
The finance division had growth prospects and F&P would continue to grow both its Q-Card and Farmers Card products, Mr Bongard said.
