Fullerton Financial, owned by Temasek, has pulled out of the bidding process for PNB Housing Finance as the rise in share price is making the deal more expensive, The Times of India reported.

The share price of PNB Housing Finance has risen by 12 percent in the past three weeks, making its market valuation almost $3.5 billion. The private equity buyout specialists, who are in the race to acquire the company, told the paper there was little appetite for a bidding war.

Fullerton pulled out after discussing with Canadian Pension Plan Investment Board (CPPIB) and Apax Partners to form a consortium.

Nearly 13 expressions of interest were filed last week and a few more dropouts are expected by the time of submitting initial bids on September 10.

First Published:Aug 29, 2018 9:06 AM IST