May 14 (Reuters) - Private equity giant Bain Capital has

pulled out from a potential A$3.34 billion ($2.2 billion) deal

to takeover Australian money manager Insignia Financial ( IOOFF )

, citing uncertainty due to turbulence in global

markets.

This leaves investment manager CC Capital as the sole

bidder for Insignia in what was once a full-fledged three-way

bidding war.

"Bain has informed Insignia Financial ( IOOFF ) that it will be unable

to proceed at this time with making a binding offer for the

company, due to the macro uncertainty caused by the volatility

in global capital markets," Insignia said in a statement on

Wednesday.

Insignia continues to be in discussions with CC Capital, it

said, with the latter working towards making a binding bid over

the coming weeks.

CC Capital did not immediately respond to a Reuters request

for comment.

Bain and CC Capital had lifted their bids for Insignia to

A$5 apiece in March, with the third contender Brookfield not

raising its bid.

Shares in the Australian wealth manager tumbled 15.3% to

A$3.39.

John Wylie's Tanarra Capital, which holds around 14% stake

in Insignia, had previously shown its support for the A$5 per

share offer price. It did not immediately respond to a request

for comment.

($1 = 1.5458 Australian dollars)

(Reporting by Roshan Thomas and Rishav Chatterjee in Bengaluru;

Editing by Leroy Leo and Mrigank Dhaniwala)