Link Says Dye & Durham Deal Not Proceeding After Rejecting Offer

David Morris, Bloomberg News

Fiber optic cables, center, and copper Ethernet cables feed into switches inside a communications room at an office in London, U.K., on Monday, May 21, 2018. The Department of Culture, Media and Sport will work with the Home Office to publish a white paper later this year setting out legislation, according to a statement, which will also seek to force tech giants to reveal how they target abusive and illegal online material posted by users. Photographer: Jason Alden/Bloomberg , Bloomberg

(Bloomberg) -- Australia’s Link Administration Holdings Ltd. has pulled the plug on a potential takeover by Canadian technology company Dye & Durham Ltd., ending a two-year process that was at one point worth C$3.2 billion ($2.4 billion).

The time for the satisfaction of outstanding conditions has expired, and there is no expectation they would be resolved, the Sydney-based data services firm said in an exchange filing Friday. Australia’s biggest service provider to its pensions industry is still considering whether to pay shareholders a special dividend of A$0.08 per share, the statement showed.

The decision not to proceed followed Link’s rejection of Dye & Durham’s revised offer on Monday, as the Toronto-based suitor sought to recut the deal in light of liabilities stemming from a collapsed fund Link administered that was run by UK star manager Neil Woodford. Dye & Durham said while making its latest proposal that it could not commit to funding redress payments for the collapsed fund.

UK’s Financial Conduct Authority issued a draft notice to Link Fund Solutions Ltd. on Sept. 20 warning that it faces an additional £50 million ($56 million) fine in relation to the collapse of the disgraced manager’s equity fund. The FCA had earlier said Link could face a redress payment of as much as £306 million.