May 14 (Reuters) - Insignia Financial ( IOOFF ) on

Wednesday said Bain Capital has pulled out of making a binding

bid for the Australia-based wealth management firm, citing

volatility in global capital markets.

Bain Capital had been locked in a bidding war with Wall

Street-based private equity firm CC Capital to buy Insignia, and

in March, had

raised

its takeover offer to A$3.34 billion (US$2.16 billion),

valuing the shares at A$5 each.

"Insignia Financial ( IOOFF ) remains in discussions with CC Capital,

which has advised that it continues to actively work towards

making a binding bid for the company over the coming weeks," the

company said in a statement.

The Australian wealth manager had granted both bidders

extended exclusivity periods till Thursday to refine their

proposals.

($1 = 1.5458 Australian dollars)