By partnering together, the companies sought to share the burden of a large equity investment and put pressure on Permira to accept a lower deal price. However, Permira rejected the offer as too low, according to people familiar with the situation.
Permira is already preparing a long-term strategy for Iglo under its ownership. However, Iglo might still be divested if Blackstone and BC Partners come up with a better offer, reported Reuters.
Iglo was put up for sale in March 2012 after Permira received unsolicited expressions of interest from several companies.
Permira was expecting a sale price of around €3bn, eight or nine times the company's forecast Ebitda of €320m this year, which would make it one of the biggest private equity transactions of 2012.
The company bought Iglo from Unilever in 2006 for €1.7bn and then combined it with another frozen food group, Findus Italy, in 2010.
