Australia’s Perpetual ended talks with KKR about a potential asset sale to the U.S. buyout firm, and will instead look to hold onto its corporate trust unit.

Australia-based Perpetual has terminated its “Scheme of Arrangement”” with KKR, following the Independent Expert's Report which concluded that the scheme is not in the best interests of shareholders.

It’s crunch time for Perpetual’s Tony D’Aloisio-chaired board. Sources said D’Aloisio summoned Perpetual’s directors for a board meeting on Sunday morning, as he races against the clock to come up with a verdict on KKR’s recut bid for its corporate trustee and wealth units before half-year results on February 27.

Australia's Perpetual Ltd has terminated talks with KKR for the A$2.2 billion ($1.4 billion) sale of its wealth management and corporate trust units and said it would pursue a sale of its wealth management business separately.

Perpetual had been considering another offer from KKR to buy its wealth management and corporate trust businesses after a deal last year was scuppered by an unexpected tax ruling. The deal activity comes amid a renewed focus from overseas investors in Australia’s wealth sector, with Insignia Financial fielding a trio of takeover bids.

Australian fund manager Perpetual Ltd has officially ended discussions with private equity giant KKR regarding the sale of its wealth management and corporate trust units. The company cited shareholder interests as

Australia's Perpetual confirmed on Monday it received a revised proposal for its wealth management and corporate trust businesses from buyout firm KKR & Co, but said the offer includes commercial terms that still need to be finalised.